This was posted on LinkedIn by a CPA. I have not read the indictment but just sharing. I love the ATM/Cash Withdrawals classified as business expenses
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1) Hunter Biden had various sources of worldwide income (US, Ukraine, China, Romania), including income, mainly for consulting amount to $7M from 16-20. He funneled the cash mostly into a Corporation, taxed as a C Corp (bad tax advice here to start, but not illegal). He also received income from the publishing of a book which was not fully reported and funneled to his wife's account instead of his business account.
2) The main issues are NOT paying the taxes he reported on the 1120 C Corp returns and personal 1040s, not claiming all income received from these endeavors, AND completely false deductions, some of which were for potentially illegal activities. A total of $4.9M in personal expenses paid with corporate funds are shown in the indictment as well.
2a) Over 4 years, he made $1.664M of "ATM/Cash Withdrawals" from the C Corp bank account. These were classified as business expenses.
3) For most of these years, the government alleges that he had the funds available to pay the self reported taxes, but chose to spend on personal items, therefore evading the collection of taxes. In 2018 alone, he made $772k of "ATM withdrawals" instead of paying his tax bill, per the indictment.
4) Of course, the C Corp had NO accounting ledger. He hired an accounting firm to help catch up the accounting, and he affirmed the expenses were all for business. There are some quite interesting expenses the government is alleging.
5) He classified a $30,000 tuition payment for his child as "Legal and Professional fees" on his tax return.
6) He put various people he had relationships with on payroll, for non business reasons, therefore lowering his income. He also deductions in excess of $100k of personal travel and hotel expenses as business. The list goes on.
There were tens of thousands of wires from the Corporation to personal account, which would cause a "Dividend" since it was a C Corp, that were classified as business expenses.
From a technical tax perspective, they could likely rip this apart further, if they desired. There was a lack of respect for the Corporate tax rules, significant foreign transactions, partnership tax issues etc.
The indictment, all though not proven, is pretty damning. The IRS and DOJ have mountains of bank records, tax records and financial documents showing all of these tax frauds that are explained in this 50 page document.
The read was quite fascinating, as the various accountants did have him sign statements saying everything is correct, likely meaning they had their doubts as to the validity of certain items. "
https://www.linkedin.com/feed/update...0435324891136/
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