President Trump Donald John TrumpSteele Dossier sub-source was subject of FBI counterintelligence probe Pelosi slams Trump executive order on pre-existing conditions: It 'isn't worth the paper it's signed on' Trump 'no longer angry' at Romney because of Supreme Court stance MORE's former longtime attorney Michael Cohen is reportedly being investigated for tax fraud.

The Wall Street Journal, citing multiple people familiar with the investigation, reported Tuesday that federal prosecutors in New York are evaluating whether Cohen’s income from his taxi-medallion business was misreported in federal tax returns.

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Prosecutors are also examining if any bank employees improperly allowed Cohen to receive loans without providing sufficient documentation.

The Journal reported that federal investigators are particularly focused on Cohen’s relationship with Sterling National Bank, which provided financing for Cohen’s taxi-medallion business.

Their probe examines whether Cohen inflated the value of any of his assets as collateral for loans from the bank, according to the Journal. The newspaper reported that authorities are also looking into whether Cohen made misrepresentations or false statements on loan applications.

Prosecutors have subpoenaed Jeffrey Getzel, a former accountant for Cohen, according to the report.

Cohen, long considered to be Trump's "fixer," is already under federal investigation for potential bank fraud and campaign finance violations. Investigators have also looked into payments he made on behalf of then-presidential candidate Trump to conceal damaging information from women.

Federal tax- and bank-fraud convictions can carry significant prison sentences, potentially adding to pressure for Cohen to cooperate with prosecutors if he is charged, the Journal noted.

Cohen has appeared to distance himself from the president in recent months. CNN reported in July that Cohen is willing to tell special counsel Robert Mueller Robert (Bob) MuellerCNN's Toobin warns McCabe is in 'perilous condition' with emboldened Trump CNN anchor rips Trump over Stone while evoking Clinton-Lynch tarmac meeting The Hill's 12:30 Report: New Hampshire fallout MORE that Trump approved a June 2016 Trump Tower meeting in which a Russian lawyer promised dirt on then-Democratic presidential candidate Hillary Clinton Hillary Diane Rodham ClintonFox News poll: Biden ahead of Trump in Nevada, Pennsylvania and Ohio Trump, Biden court Black business owners in final election sprint The power of incumbency: How Trump is using the Oval Office to win reelection MORE.

Trump later tweeted accusing Cohen of making up stories to get out of legal trouble in New York.

"Sounds to me like someone is trying to make up stories in order to get himself out of an unrelated jam (Taxi cabs maybe?)," the president wrote, without referring to Cohen by name.

Updated at 1:06 p.m.