During a recent hearing, Trump attorney Emil Bove highlighted that the 1099 forms sent to Michael Cohen in 2017 indicated that the payments made to him were also disclosed to the IRS. This revelation came to light during a questioning session where Bove sought clarification on the nature of the payments.
When asked if the payments were disclosed to the IRS, McConney, the individual being questioned, confirmed that they were indeed reported to the tax authorities. Bove then pointed out that the form in question did not provide a breakdown between payments for legal services and other expenses.
Further probing the matter, Bove inquired whether it was Cohen's responsibility to determine how to account for these payments on his personal tax returns. McConney affirmed that it was indeed Cohen's duty to handle the tax implications of the payments.
However, when asked whether McConney was aware of how Cohen had accounted for these payments on his taxes, McConney stated that he did not have knowledge of Cohen's specific actions in this regard.
The exchange shed light on the complexities involved in reporting and accounting for payments, especially in cases involving legal services. The responsibility for accurately reflecting such transactions on tax returns falls on the individual receiving the payments, emphasizing the importance of proper financial record-keeping and compliance with tax regulations.
