A lawyer for the president denied any wrongdoing. | Getty New York tax officials probing Trump family tax practices

ALBANY — New York state officials are probing the tax practices of President Donald Trump and his family following a New York Times report on their use of tax avoidance schemes that they called deceptive and potentially fraudulent.

The Department of Taxation and Finance, which is responsible for investigating tax fraud, has opened an investigation; it can collect fines and penalties and also refer criminal actions to the attorney general's office. The alleged actions took place three decades ago, likely putting any criminal liability past the statute of limitations.


"The Tax Department is reviewing the allegations in the NYT article and is vigorously pursuing all appropriate avenues of investigation," said department spokesman James Gazzale in a statement.

A spokeswoman for the attorney general's office declined to comment.

The New York Times reported on Tuesday that the Trump family engaged in tax schemes to avoid taxes on gifts and payments from Fred Trump, the president's father, to his children.

The Times reviewed public documents and confidential files from Fred Trump's real estate empire and detailed how the president received about $413 million in today's money from his father over several years, calling into question the president's portrayal of himself as a self-made business mogul.

The Times report found questionable tax practices, including the write-off of an $11 million loan and undervaluing assets. The family also set up a building supply company that served to transfer money from Fred Trump to his sons and other family members — avoiding gift and inheritance taxes, according to the Times.

A lawyer for the president denied any wrongdoing.

“The New York Times’ allegations of fraud and tax evasion are 100 percent false, and highly defamatory,” said Charles Harder in a statement to the Times. “There was no fraud or tax evasion by anyone. The facts upon which The Times bases its false allegations are extremely inaccurate.”