IRS agent testifies Manafort failed to report $16.5M in taxable income

IRS agent testifies Manafort failed to report $16.5M in taxable income

An IRS agent testified on Wednesday that former Trump campaign chairman Paul ManafortPaul John ManafortHillicon Valley: Trump's exclusive interview with Hill.TV | Trump, intel officials clash over Russia docs | EU investigating Amazon | Military gets new cyber authority | Flynn sentencing sparks new questions about Mueller probe Comey: Mueller may be in 'fourth quarter' of Russia probe Flynn sentencing move spurs questions about duration of Mueller probe MORE accumulated $16.5 million in unreported taxable income between 2010 and 2014.

Reuters reported that prosecutors called IRS revenue agent Michael Welch to testify about business and tax records regarding Manafort, who was charged as part of special counsel Robert MuellerRobert Swan MuellerSasse: US should applaud choice of Mueller to lead Russia probe MORE's ongoing investigation. Welch said Manafort's unreported taxable business income included foreign wire transfers and income reclassified as loans.

Welch had been in the courtroom observing the trial leading up to his testimony, a fact that irked Judge T.S. Ellis III, The Washington Post reported.

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Ellis grew frustrated with the prosecution, telling them he typically bars all witnesses from watching trials. The judge has previously clashed with the attorneys in the case over their gestures and facial expressions.

Manafort is on trial for an assortment of alleged financial crimes in what is the first major courtroom test for Mueller's team. The charges relate to his work as a pro-Russia lobbyist in Ukraine.

Manafort has pleaded not guilty to all charges.

The prosecution has argued that Manafort concealed millions of his earnings in overseas bank accounts and used the unreported income to fund a lavish lifestyle.

Prosecutors previously argued that Manafort opened more than 30 overseas bank accounts to hide more than $60 million he earned from lobbying work.

The prosecution called their star witness, fellow Trump campaign alumnus Rick Gates, to the stand on Monday. Gates's testimony lasted into Wednesday, as he admitted to committing crimes with Manafort and acknowledged he embezzled from his former associate. Gates also copped to using money he stole from Manafort to fund an affair.

The defense has attempted to attack Gates's credibility and frame Manafort as the victim in the relationship.