New York State officials are reviewing allegations of fraud against President Donald Trump and his father Fred made in a bombshell New York Times investigation.
The New York Times report alleges that the Trumps undervalued assets in an attempt to circumnavigate large state and gift tax bills as part of the wealth transfer from Fred to his children, including Donald.
The New York State Department of Taxation and Finance told Business Insider that the state is looking into the allegations.
“The Tax Department is reviewing the allegations in the NYT article and is vigorously pursuing all appropriate avenues of investigation,” a spokesperson said in an email.
The Internal Revenue Service, which collects federal taxes, did not immediately respond to a request for comment.
For example, The New York Times detailed an instance in which the Trump family claimed on a tax return that the Park Briar development in the Queens borough of New York City was worth just $2.9 million while executing the will of Donald’s brother Fred Jr. But, just 18 days before the Times said, the Trump family valued the same development at $17.1 million.
By lowering the value in the development, the Trumps could then avoid a larger tax bill from the IRS, The Times said.
The report also detailed Fred Trump’s complex series of trusts and shell companies that allowed the Trump children — in particular Donald — to inherit millions of dollars with minimal tax liabilities.