Cuomo Signs Legislation Allowing Congress to Request Trump's NY State Tax Returns
It's unclear if members of Congress will immediately take advantage of the legislation to seek Trump's state tax filings.
July 08, 2019 at 12:11 PM
6 minute read
President Donald Trump's New York state tax returns will be subject to request at any time by members of the U.S. Congress after Gov. Andrew Cuomo on Monday signed legislation into law to provide that option for federal lawmakers.
The approval comes about a week after Democrats in Congress sued the U.S. Treasury Department for refusing to disclose copies of Trump's federal filings to the U.S. House of Representatives Ways and Means Committee.
The legislation signed by Cuomo on Monday will direct the state Department of Taxation and Finance to disclose copies of Trump's state tax returns if they're requested by the chairpersons of three congressional committees. It would not give Congress access to his federal filings.
While the measure was directed at Trump, who broke four decades of tradition in 2016 by refusing to release his tax returns to the public while running for president, it would also allow Congress to request the New York tax filings of other publicly elected or appointed officials, including judges.
That's more narrow than the original version of the bill, which would have allowed Congress to request the tax filings of any New York resident. The broad language of that version caused concern among many members of the state Legislature, particularly Republicans, who argued that it infringed on the privacy rights of New York residents.
Cuomo, in signing the legislation Monday, said that tax privacy is important, but that congressional oversight should take priority in the case of the president.
“Tax secrecy is paramount—the exception being for bonafide investigative and law enforcement purposes,” Cuomo said. “By amending the law enforcement exception in New York State tax code to include congressional tax-related committees, this bill gives Congress the ability to fulfill its constitutional responsibilities, strengthen our democratic system and ensure that no one is above the law.”
The charge for providing a mechanism to disclose Trump's state tax returns has largely been led in recent years by State Sen. Brad Hoylman, D-Manhattan, and Assemblyman David Buchwald, D-Westchester. Both sponsored the legislation signed by Cuomo on Monday.
Hoylman, in a statement after the legislation's approval, noted how New York was in a unique role, nationally, to legislate such an option since Trump is a resident of the Empire State.
“As the home state of Donald Trump, New York has a special role to play to help avoid a constitutional crisis between the president and Congress in their effort to obtain his tax returns,” Hoylman said. “But this legislation is bigger than one person or one president. Moving forward, this new law helps Congress perform one of its most important responsibilities: oversight of the Office of the President.”
There are a few strings attached for such a request from Congress to the state Department of Taxation and Finance. For one, federal lawmakers would only be allowed to ask for someone's returns if they've already sought them from the U.S. Treasury Department. In the case of Trump, that box is already checked.
“Our republic has endured for over 200 years thanks to the system of checks and balances provided in our Constitution,” Buchwald said. “Consistent with this tradition, New York state now stands ready to assist Congress as it challenges the Trump administration's refusal to provide his tax records.”
Federal lawmakers also wouldn't be able to obtain an individual's tax returns without a specific purpose. The legislation mandates that the request be “related to, and in furtherance of, a legitimate task of the Congress.”
The list of individuals whose tax returns could be requested is specific; it targets both elected officials and those appointed or employed by those individuals.
Congress would be able to request the state tax returns of the president, vice president and any other employee within the executive branch of federal government, including the president's cabinet.
Members of the U.S. House of Representatives and U.S. Senate from New York could also have their tax documents requested, as could members of the State Senate and Assembly. Statewide elected officials, like the governor, would also be eligible for such a request, as would members of the governor's cabinet.
The legislation would also allow the state tax returns of local elected officials, such as mayors and county executives, to be requested by Congress. Political party leaders in New York would also be subject to such a request.
Any judge within the state court system, from the trial court level to the state's highest court, could also have their state tax returns requested by Congress, according to the bill.
It's unclear if members of Congress will immediately take advantage of the legislation to seek Trump's state tax filings.
Only three members of Congress would be able to request those documents from New York: the leaders of the U.S. Senate Finance Committee, U.S. House Ways and Means Committee, and the Joint Committee on Taxation.
Rep. Richard Neal, D-Massachusetts, is chairman of the latter two committees and indicated earlier this year that he may not take immediate advantage of the new law. A spokesman for Neal told Bloomberg News they were more interested in investigating routine audits conducted by the Internal Revenue Service on the president and vice president than diving into Trump's finances.
U.S. Sen. Chuck Grassley, R-Iowa, is chairman of the Senate Finance Committee.
The New York law allows Congress to ask for copies of Trump's state tax returns immediately, rather than hashing out the request in court. But the advantage of pursuing litigation over Trump's tax filings, as attorneys know, would be to set a definitive precedent.
Hoylman has previously said he doesn't expect a legal challenge over the legislation, noting that it's unclear what standing would exist to bring such a challenge, but was confident it would withstand judicial review if tested.
READ MORE:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllEric Adams Trial Set for April as Defense Urges Dismissal of Bribery Count
Decision of the Day: De Blasio Must Sit for Deposition in Suit Over City Program to Transfer Foreclosed Properties
The Legislature Has Enacted Landmark Criminal Justice Reforms. Now It Should Take Steps to Improve the System
8 minute readTrending Stories
- 1Infant Formula Judge Sanctions Kirkland's Jim Hurst: 'Overtly Crossed the Lines'
- 2Abbott, Mead Johnson Win Defense Verdict Over Preemie Infant Formula
- 3Guarantees Are Back, Whether Law Firms Want to Talk About Them or Not
- 4Trump Files $10B Suit Against CBS in Amarillo Federal Court
- 5Preparing Your Law Firm for 2025: Smart Ways to Embrace AI & Other Technologies
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250