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Trump tax firm says documents not reliable

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The former president Donald Trump stands still as he delivers his speech at the rally in Florence, Ariz., Saturday, January 15, 2022.

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After generating a decade-worth of statements from ex-Presidents, Mazars accounting firm has terminated its relationship with the Trump Organization. Donald TrumpIn a Monday court filing, the New York Attorney general’s office stated that one should not rely on a person’s financial status.

Mazars was the accountant who prepared Trump’s tax returns, as well as financial statements, for over a decade. They informed the Trump Organization’s chief lawyer Alan Garten they would not represent them due to the unreliability of the financial statements.

AG Letitia James’s Office cited this letter on Monday. It asked for a state judge order that Donald Trump Jr., Ivanka Trump, the Trump Organization and all others comply with subpoenas requesting documents and evidence.

James spent several years researching how Trump Organization valued real estate assets for applications to loans and insurance policies.

Trump’s ex-personal lawyer Michael Cohen told Congress that Cohen manipulated the assets’ value depending on their circumstances to get better terms and lower tax obligations.

James’ office reported last month that its assessment of Trump’s financial statements had found them to be “in general terms and in ways that were often inaccurate and misleading when compared with supporting data and documentation submitted by the Trump Organization to their accounting firm.”

These statements were prepared using information supplied by Trump Organization.

In Wedndesaday’s letter, Mazars informed Garten that Trump’s statements regarding his financial situation for 2011-2020 “shouldn’t be relied on.”

Garten was told by the firm that their conclusion was based only on files made by AG’s offices, our own investigation, and other information from various parties.

Mazars wrote to Garten, “While we are not concluding that all financial statements contain material discrepancies, in the aggregate of the circumstances,” Mazars stated.

Mazars stated in its letter, that it will no longer provide any work products to Trump Organization.

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It stated that it made its decision based upon past work’s reliability. However, due to “the totality of the circumstances”, the firm also concluded that the Trump Organization has a conflict of interest.

Mazars stated that, as of writing the letter, there were only a few tax returns left to file, which included those of Donald J. Trump, and Melania Trump. Separately, we will provide you with a listing of these returns along with their progress towards completion.

Mazars explained that February 15th, 2022 is the deadline to submit those returns.

CNBC did not reach Garten immediately for comment.

Manhattan District Attorney’s Office has launched a parallel criminal investigation to examine the same issues James is focusing on in her civil investigation.

After a long struggle by Trump to stop a subpoena from Mazars, the DA’s Office last year obtained Trump’s corporate and personal tax returns that date back to 2011.

This is the latest news. Stay tuned for new updates.

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