Congress Can't Subpoena Deutsche Bank for Trump's Taxes, Attorneys Say
"While the Committees 'do not know' whether Deutsche Bank can disclose tax returns in response to the subpoenas, they never identify their authority to request tax returns in the first place," Trump's attorneys wrote. "They have none."
August 30, 2019 at 10:46 AM
6 minute read
Attorneys for President Donald Trump wrote in a new letter to a federal appellate court in Manhattan that even if Deutsche Bank has copies of his tax returns, or those of Trump family members or businesses, the two committees in Congress that requested them are barred from doing so under federal law.
The letter was transmitted late Thursday night.
The U.S. House of Representatives' Financial Services and Intelligence committees, which have subpoenaed Deutsche Bank for those records, among others, don't have that power, they wrote in a letter to the U.S. Court of Appeals for the Second Circuit.
"While the Committees 'do not know' whether Deutsche Bank can disclose tax returns in response to the subpoenas, they never identify their authority to request tax returns in the first place," Trump's attorneys wrote. "They have none."
Trump is represented in the litigation by William Consovoy and Patrick Strawbridge of Consovoy McCarthy.
The argument was in response to a previous letter written by Douglas Letter, general counsel for the U.S. House of Representatives. He said Congress would be lawfully allowed to obtain the tax returns of Trump, or his three eldest children, under certain conditions. But that power is not absolute, Letter wrote.
It would depend on how Deutsche Bank obtained those tax filings, according to Letter. He argued that if the bank received those tax documents directly from Trump, or his children, they would be fair game for disclosure to Congress.
The same would be true if Deutsche Bank obtained those tax filings from the Internal Revenue Service, as long as it did so with the consent of Trump or his family, Letter wrote. He referred to 26 U.S.C. §6103, a section of federal law that prohibits the disclosure of certain tax information.
"The application of Section 6103 to any tax returns or return information that defendants Deutsche Bank and Capital One Bank might have depends on how the banks obtained that information — facts the Committees do not know," Letter wrote.
Trump's attorneys wrote that, even if there's a question as to whether Deutsche Bank can disclose those tax filings, neither committee in Congress, as of now, has the power under federal law to request them.
They argued in the new filing that tax return requests, governed under §6103, are only allowed from the House Ways and Means Committee, Senate Finance Committee, and Joint Committee on Taxation.
"The House Financial Services and Intelligence Committees aren't listed," Trump's attorneys wrote.
Other committees can request an individual's tax filings, but only after the House approves a resolution that spells out the purpose of such an inquiry, and whether the information could be obtained elsewhere. That hasn't happened, Trump's attorneys wrote.
The Second Circuit is currently considering whether to uphold a decision handed down earlier this year by U.S. District Judge Edgardo Ramos of the Southern District of New York, who declined to issue a preliminary injunction against the subpoenas at the time.
Trump's attorneys wrote in the new filing that the appellate court didn't need to weigh, in its decision, whether the committees could, or could not, request Trump's tax filings. Their point, instead, was that if the court doesn't enjoin the subpoenas, their argument over the authority of those committees could become moot by the disclosure of the tax documents.
"They raise 'serious questions' (including the Committees' attempts to exceed §6103 and the limits on their jurisdiction) that should be litigated, instead of mooted by the district court's denial of a preliminary injunction," Trump's attorneys wrote.
The new filing came days after attorneys for Deutsche Bank disclosed to the Second Circuit that it had the tax returns of at least one member of the Trump family or one of its business entities, but did not publicly state whose filings they were. That information was redacted.
The Second Circuit, after hearing arguments on the matter earlier this month, had asked Deutsche Bank and Capital One to say, definitively, whether they had the tax returns of Trump, his three eldest children, or one of their business entities while it considers the litigation.
The lawsuit was initially brought on behalf of the Trump family members and entities in April to block a series of subpoenas sent to Deutsche Bank and Capital One from the House Financial Services and Intelligence committees earlier this year.
Those committees were seeking financial documents from the two banks related to the Trumps and their businesses. That request, if allowed, may give Democrats on the committees a way to obtain copies of Trump's tax returns, if Deutsche Bank has them, after other attempts have fallen short.
Letter, in previous statements, has said the subpoenas were part of a broader effort to investigate money laundering and foreign influence on the U.S. government. Capital One said in its own letter to the appellate court this week that it did not have any of Trump's tax filings.
Congressional Democrats have moved, in recent months, to obtain more information on Trump's finances through legislation and litigation.
The House Oversight Committee, for example, has issued a subpoena to Trump's personal accounting firm. That request is now the subject of litigation before the U.S. Court of Appeals for the D.C. Circuit, where a decision is expected soon.
Lawmakers in New York also approved legislation this year that would allow certain committees in Congress to request copies of Trump's tax filings from the state Department of Taxation and Finance. That law is now also the subject of litigation in Washington, D.C., federal court.
Both lawsuits, among others over Trump's financial dealings, are ongoing.
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 AllTrump's SEC Overhaul: What It Means for Big Law Capital Markets, Crypto Work
From ‘Deep Sadness’ to Little Concern, Gaetz’s Nomination Draws Sharp Reaction From Lawyers
7 minute readTrump Picks Personal Criminal Defense Lawyers for Solicitor General, Deputy Attorney General
Trending Stories
- 1Judge Denies Sean Combs Third Bail Bid, Citing Community Safety
- 2Republican FTC Commissioner: 'The Time for Rulemaking by the Biden-Harris FTC Is Over'
- 3NY Appellate Panel Cites Student's Disciplinary History While Sending Negligence Claim Against School District to Trial
- 4A Meta DIG and Its Nvidia Implications
- 5Deception or Coercion? California Supreme Court Grants Review in Jailhouse Confession Case
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