Details of Hunter Biden’s tax evasion scheme, along with the poor case management by prosecutors, have been unveiled. This comes as the House Ways and Means Committee releases the testimony of a second IRS whistleblower.
The IRS case agent’s testimony alleges that Hunter Biden deliberately crafted an intricate tax evasion strategy involving Burisma, a Ukrainian company he was associated with, and a business associate from China. [Source]
The investigation into Hunter Biden’s financial activities led to a guilty plea deal for two misdemeanor counts related to late tax payments. However, the testimony given by the whistleblower, who was the lead IRS case agent for the investigation, suggests a much more systematic attempt at tax evasion.
The whistleblower, whose identity remains confidential, provided detailed testimony about Hunter Biden’s past tax filings and financial management strategies. [Source]
As it turns out, Biden has had a significant history of tax issues. He even hired Eric Schwerin, a finance accountant, to assist him.
The IRS whistleblower testified, “Hunter Biden had a lot of tax issues, even before all of this. In 2002, he filed his Form 1040 late and owed over $100,000 in taxes. In 2003, he owed more than $100,000 in taxes. In 2004, he filed late again and owed more than $20,000 in taxes. Then in 2005, he filed his personal return late and owed over $100,000 in taxes.”
“Eric Schwerin then created an entity named Owasco P.C., a C Corporation. The problem Hunter was facing involved a lot of 1099 income, which had no taxes withheld. This is why he owed a substantial amount when it came time to file his returns. So, this C Corporation was created. The C Corporation would receive this 1099 income and pay him a salary in W-2 wages. Eric Schwerin set this up.”
This is the first indication that Hunter was actively avoiding tax payments.
The most alarming revelations involve Biden’s tenure on the board of the Ukrainian energy company, Burisma. Both he and his business associate, Devon Archer, were earning a million dollars a year for their roles.
The IRS agent added, “Upon joining the board, Hunter sent an email to Devon Archer outlining our plan for dealing with this million dollars.”
Hunter’s plan was to avoid reporting the money as income and instead channel it through a Chinese firm run by an associate. This associate would then “loan” the money back to him.
The IRS whistleblower continued:
“[Hunter Biden] outlines this in an email, and what ends up happening is – imagine this. If you own a company and your friend tells you they want to pay their wages to your company and you’re going to loan the money back to them, that’s essentially what happened here. He took loans from that corporation – which were actually distributions. He didn’t pay taxes on those loans.”
This strategy allowed him to avoid paying any taxes on the $666,667 he received from Burisma in 2014. For the year 2014, Hunter had a tax liability of $124,845, an amount that was never paid or pursued.
Hunter Biden’s income in 2014 wasn’t included in the misdemeanor charges against him, and the statute of limitations has since expired, rendering the charges unprosecutable.
Complicating the financial trail further, the IRS whistleblower reported that Hunter Biden’s friend, Hollywood lawyer Kevin Morris, repaid the $2.2 million owed by Hunter Biden for the years 2014 through 2019. [Source]
While the testimony reveals Hunter’s deception, it also highlights the preferential treatment he received from prosecutors.
Despite the agent’s findings, the Justice Department accepted Biden’s defense that the money was a loan – a claim the whistleblower disputes, asserting, “You can’t loan yourself your own money. It just doesn’t make sense.”
Throughout the testimony, the agent details the challenges and hurdles he faced when beginning his investigation into Hunter Biden.
He stated, “It felt like the line attorneys weren’t listening to us. They weren’t following the evidence. They were saying, well, they’ve provided this defense, so that’s the way it has to be, versus us looking at it like, well, no, let’s figure out what the evidence shows.”
Do you think the released report from the IRS whistleblower’s testimony will prompt a more concerted effort to investigate Hunter Biden?
Should Hunter be facing felony charges?