There’s a long legal battle brewing now that Rep. Richard Neal, the chairman of the House Ways and Means Committee, has asked for President Trump’s tax returns.
Read: House Democrats ask IRS to turn over 6 years of Trump’s tax returns
But what would Neal find if successful?
The documents will reveal information about the sources of Trump’s income and any foreign bank accounts in countries that guarantee secrecy, as well as provide more information about his use of tax-planning strategies and offshore companies, says Andrew Schmidt, a professor of accounting and tax at North Carolina State University.
On Wednesday Neal sent his request directly to the Internal Revenue Service, asking for six years of the president’s personal returns and tax info related to eight Trump business entities. The IRS has only three years to audit a tax return but it has six years if a taxpayer left off 25% or more of their income or more than $5,000 of foreign income. Trump owns a number of foreign properties, notably golf courses and hotels.
The information Neal requested, if provided, also would be more than enough to see whether the 2017 tax reform law directly benefitted Trump, Schmidt told MarketWatch. “That might turn some heads in his base. I have read about people being disappointed with the size of their refunds this year, even if they are not paying higher taxes,” Schmidt said.
Neal also requested all the administrative files for Trump’s returns as well, which could answer the question once and for all whether the president’s returns are or have ever been under audit, as he claimed.
Schmidt thinks The New York Times expose of alleged tax fraud by Trump’s father and, by extension Trump and his siblings, suggests that the Trump family is not averse to tax strategies that avoid or even evade taxes. More current returns could show if the president is following his father’s example, as described by the The New York Times, of allegedly engaging in real-estate related tax maneuvers that greatly increased the fortune his children received.
In a statement to media, Lisa Gilbert, vice president of legislative affairs at Public Citizen, said, “As the public takes to the streets to demand release of the full Mueller report and underlying findings today, it’s essential that Congress also use all of its tools towards getting to the bottom of this complicated story. Part of the picture we need to see is how Trump’s financial ties to Russian or other foreign interests may be influencing his policy decisions. These tax returns are an important key to unlocking those truths.”
However, Schmidt is skeptical that the Congressional request will be fulfilled in the near future. “This will be in court for years. The administration will fight it to the end,” Schmidt said.
See also: Trump dropped a big tax clue in debate -- here’s what it means
Read also: Here’s what was learned from Trump’s 2005 tax return
Asked on Wednesday evening about the request, Trump said: “Until such time as I am not under audit, I will not be doing that, thank you.”
The top Republican on Ways and Means, Rep. Kevin Brady of Texas, rejected the request’s premise in a letter to Treasury Secretary Steven Mnuchin, who oversees the IRS. “Weaponizing our nation’s tax code by targeting political foes sets a dangerous precedent and weakens Americans privacy rights,” Brady wrote to the Treasury secretary.
Read: Trump says he will be first candidate since 1976 not to release tax returns