Mandatory Review of Tax ReturnsMost people are probably aware that various groups, including the US Congress, have been trying to get President Trump to release his tax returns. In 2016, then candidate Trump indicated he would release his returns if elected. 

More recently, President Trump has been asking the Federal Court to block a subpoena issued by the Manhattan District Attorney’s Office for the president’s corporate and personal tax returns. The US Circuit Court of Appeals for the 2nd Circuit recently upheld a ruling by a lower court that denied Trumps’ efforts to block a subpoena issued by the House Committee on Oversight and Reform to Trump’s accountants for his tax returns.

President Trump has said multiple times he cannot release his returns until the IRS finishes auditing them. However, there is no rule or law that says he must wait until the IRS finishes its audit.

What most people don’t realize is that the tax returns of both the President and the Vice President are subject to mandatory audit by the IRS. The Internal Revenue Manual, aka IRM, even lays out some procedures for handling those special tax returns. 

The IRS takes its confidentiality requirements very seriously for all taxpayers, not just the president and vice president. Even so, according to former IRS officials, those audits are viewed only by a small number of senior career IRS staff. 

The returns are sent to a special examiner in Baltimore. Also, the tax returns of the president and vice president must be kept “at all times” in an orange folder and locked in a secure drawer or cabinet when the appointed IRS examiner is not with the documents, according to the IRS’s manual.

So, whether Congress or a New York District Attorney ever gets to see President Trump’s returns remains to be determined. But, we do know the IRS really is looking at his returns. Do you keep your returns in an orange folder?

Speak With a Lawyer About Your IRS Tax Return and Tax Audit Today

Contact the Sodowsky Law Firm, PC for a detailed and confidential evaluation of your situation. We can guide you through the IRS tax return and audit process, negotiate on your behalf, and ensure that the IRS complies with federal laws and regulations.