President TrumpDonald John TrumpTrump knocks BuzzFeed over Cohen report, points to Russia dossier DNC says it was targeted by Russian hackers after fall midterms BuzzFeed stands by Cohen report: Mueller should 'make clear what he's disputing' 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 MuellerRobert Swan MuellerSasse: US should applaud choice of Mueller to lead Russia probe MORE that Trump approved a June 2016 Trump Tower meeting in which a Russian lawyer promised dirt on then-Democratic presidential candidate Hillary ClintonHillary Diane Rodham ClintonTrump knocks BuzzFeed over Cohen report, points to Russia dossier DNC says it was targeted by Russian hackers after fall midterms Special counsel issues rare statement disputing explosive Cohen report 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.