Trump Organization comptroller Jeffrey McConney testified that the engineers behind him were facing extra pay and bonuses at the behest of high-level executives as the company’s criminal trial in New York continued Thursday.
McConney reiterated that he followed the direction of former Chief Financial Officer Allen Weisselberg and other high-level Trump Organization officials. executives to impose additional benefits on their salaries in bonuses that were ultimately not reported to the tax authorities.
McConney also cut bonus checks through 1099 tax forms meant for independent contractors – a method that does not withhold taxes on the employer side. Those workers then didn’t report those bonuses as income on their personal taxes, so they got the money tax-free for several years, he confirmed.
The treatment also allowed the Trump Corporation to pay no payroll or Medicare taxes on the bonus amount, the comptroller confirmed when asked on the stand.
In addition to former Trump Org. CFO Allen Weisselberg’s son, Barry and his wife lived for years in a Central Park property paying $1,000 a month in rent — well below market value for the location — and part of that amount was covered by the company as a fringe benefit without reporting it to the tax authorities, McConney testified.
Trump Org. Chief Operations Officer Matthew Calamari Sr. he similarly received an independent contractor bonus and fringe benefits, including car leases for himself and his wife and $72,000 in annual rent for a Park Avenue apartment that ultimately went unreported to the tax authorities, McConney said.
Calamari’s son, who also works for the company, received some perks — his rent in the Central Park South building in New York City was treated as a fringe benefit, and records show his father paid at least $130,000 to renovate the apartment. of through the company without paying taxes. the.
McConney testified that Trump Org’s tax advisor. from Mazars, Donald Bender, never told him that his taxable income understatement practices were illegal.
But he acknowledged that Bender told him he was “not a fan” of the practice of issuing bonuses using 1099 tax forms when they could be withheld as part of Trump Corporation’s annual compensation and taxed using a W2 tax form.
Around 2011, Bender advised McConney to stop cutting a bonus check to an in-house attorney because they could lose their law license for receiving it as an independent contractor, but McConney testified that he never questioned whether the illegality of their handling the bonuses will apply to anyone else.
Bender has not been charged with any wrongdoing. He has not responded to multiple requests for comment.
McConney also admitted to filing tax forms for Weisselberg, Calamari and others improperly reporting to the tax authorities that they did not maintain residences in New York, thereby evading municipal taxes.
The Trump Organization. the auditor acknowledged that he and other Trump Org accounting personnel ceased these internal accounting practices in 2017 around the time a tax advisor conducted an internal audit of the Trump Org. and President Donald Trump took office.
The jury also saw accounting books for Donald Trump that McConney said appeared to have undergone treatment, but he could not recall whether he had made the changes.
A ledger turned over as evidence by Mazars showed no line item entries with notes mentioning Weisselberg.
The books prosecutors obtained in 2021 directly from the Trump Organization. In which case, show multiple line items in Donald Trump’s personal ledger with things like Weiselberg’s grandchild’s tuition marked “for Allen.”
The trial will continue on Monday.
title: “Trump Org. The Auditor Said He Was Instructed To Hide The Benefits On Tax Forms "
ShowToc: true
date: “2022-11-11”
author: “Dennis Harrison”
Trump Organization comptroller Jeffrey McConney testified that the engineers behind him were facing extra pay and bonuses at the behest of high-level executives as the company’s criminal trial in New York continued Thursday.
McConney reiterated that he followed the direction of former Chief Financial Officer Allen Weisselberg and other high-level Trump Organization officials. executives to impose additional benefits on their salaries in bonuses that were ultimately not reported to the tax authorities.
McConney also cut bonus checks through 1099 tax forms meant for independent contractors – a method that does not withhold taxes on the employer side. Those workers then didn’t report those bonuses as income on their personal taxes, so they got the money tax-free for several years, he confirmed.
The treatment also allowed the Trump Corporation to pay no payroll or Medicare taxes on the bonus amount, the comptroller confirmed when asked on the stand.
In addition to former Trump Org. CFO Allen Weisselberg’s son, Barry and his wife lived for years in a Central Park property paying $1,000 a month in rent — well below market value for the location — and part of that amount was covered by the company as a fringe benefit without reporting it to the tax authorities, McConney testified.
Trump Org. Chief Operations Officer Matthew Calamari Sr. he similarly received an independent contractor bonus and fringe benefits, including car leases for himself and his wife and $72,000 in annual rent for a Park Avenue apartment that ultimately went unreported to the tax authorities, McConney said.
Calamari’s son, who also works for the company, received some perks — his rent in the Central Park South building in New York City was treated as a fringe benefit, and records show his father paid at least $130,000 to renovate the apartment. of through the company without paying taxes. the.
McConney testified that Trump Org’s tax advisor. from Mazars, Donald Bender, never told him that his taxable income understatement practices were illegal.
But he acknowledged that Bender told him he was “not a fan” of the practice of issuing bonuses using 1099 tax forms when they could be withheld as part of Trump Corporation’s annual compensation and taxed using a W2 tax form.
Around 2011, Bender advised McConney to stop cutting a bonus check to an in-house attorney because they could lose their law license for receiving it as an independent contractor, but McConney testified that he never questioned whether the illegality of their handling the bonuses will apply to anyone else.
Bender has not been charged with any wrongdoing. He has not responded to multiple requests for comment.
McConney also admitted to filing tax forms for Weisselberg, Calamari and others improperly reporting to the tax authorities that they did not maintain residences in New York, thereby evading municipal taxes.
The Trump Organization. the auditor acknowledged that he and other Trump Org accounting personnel ceased these internal accounting practices in 2017 around the time a tax advisor conducted an internal audit of the Trump Org. and President Donald Trump took office.
The jury also saw accounting books for Donald Trump that McConney said appeared to have undergone treatment, but he could not recall whether he had made the changes.
A ledger turned over as evidence by Mazars showed no line item entries with notes mentioning Weisselberg.
The books prosecutors obtained in 2021 directly from the Trump Organization. In which case, show multiple line items in Donald Trump’s personal ledger with things like Weiselberg’s grandchild’s tuition marked “for Allen.”
The trial will continue on Monday.
