Ransford: No, everyone doesn’t do it
President Trump’s corporations were found guilty this week by a Manhattan jury of 17 counts for tax fraud for not reporting compensation income to its executives.
The top-brass employees received apartments, furniture, Mercedes Benz cars, and computers, and the companies paid for their kids’ private-school tuition. The companies did not report this as compensation, but it clearly is, so the executives paid a lot less income and payroll tax than they should have.
A lot of taxpayers think this goes on all the time, and that everyone does it, but that is false. I have prepared tax returns since 1984, and I have never signed a return where this took place. I think I am speaking for nearly every CPA I’ve ever met.
This behavior is egregious, and it starts with the person at the top: Donald Trump. Public companies are very wary of this behavior, it is illegal, and not worth the risk. It is obvious and well-known that these perks are taxable.
It is another example that Donald Trump thinks he’s above the law.