Investigators with the Manhattan Bureau of Attorney, which is conducting a comprehensive criminal investigation, and the New York State Bureau of Investigation, which is conducting a civic investigation, have filed a complaint with the Trump administration seeking records related to the consultation fee.
These are just two of the legal challenges Trump faces when he leaves the White House. There is no indication that Ivanka Trump miscalculated such payments.
A New York Times investigation of more than two decades worth of Trump's tax records found he paid little or no federal income taxes at all in most years due to his business losses.
Among the revelations was that Trump reduced his taxable income by deducting about $26 million in fees to unidentified consultants as a business expense on numerous projects between 2010 and 2018.
The fees apparently paid to Ivanka pose the question of whether the payments were a tax-deductible way for Trump to pay his children or a way to avoid gift taxes he could incur from transferring wealth to them.
Subpoenas from NY focus on fees paid to Ivanka's consulting firm, TTT Consulting, the Times added. The name of the firm appears to be a reference to Ivanka Trump and other members of her family.
Alan Garten, the general counsel for the Trump Organization, slammed the subpoenas as 'just the latest fishing expedition in an ongoing attempt to harass the company'. He added that "all applicable taxes have been paid and that no party has received undue benefits". "They know there is nothing here and no tax benefits at all".
According to the report, the Internal Revenue Service could reject such write-offs if they were claimed as a way to avoid taxes.
However, it's not clear if the IRS ever questioned the Trump Organization about their write-off practices. The tax benefit to Donald Trump from deducting the fees on his companies' federal returns would also be reflected on his NY returns, making it of possible interest to the state.
That amount exactly matched the consulting fees claimed as tax deductions by the Trump Organization for hotel projects in Hawaii and Vancouver.
The offices of the district attorney and the attorney general declined to comment.
Ivanka Trump responded to the Times burial on Thursday evening, tweeting " This is pure and simple harassment.
Few details have been publicly disclosed about the district attorney's investigation, the only known active criminal case involving Donald Trump. Vance's office began the inquiry more than two years ago, initially focusing on the Trump Organization's role in hush money paid during the 2016 presidential campaign to Stormy Daniels, a pornographic film actress who claimed to have had an affair with Trump.
The investigation has been stalled since last fall, after the president filed a lawsuit to block a subpoena for his tax returns and other financial records. The Supreme Court is expected to rule on the matter soon. Both Vance and James are Democrats.
The New York State Attorney's investigation is focused on whether Trump or Trump's agency misappropriated certain assets in violation of tax laws or when seeking a $ 100 million loan and loan waiver.