According to the report, in 2021, Santos filed a late tax return reporting a negative $70,481 in total income — claiming he had suffered more than $90,000 in business losses and received $20,304 in unemployment compensation. While he claimed the losses were primarily because of payments made to a company owned by one of his campaign consultants, in reality, those payments were made in 2022, not 2021. Investigators say Santos also failed to disclose his unemployment income and income from Harbor City Capital, a now-defunct Florida-based investment firm that the SEC has described as a “fraud.” Santos also is accused of failing to report in his taxes unearned income from other assets, including more than $20,000 in stock transactions. Despite claiming in his taxes that he had a negative salary in 2021, in credit card applications, Santos claimed to have an income of $9,000 per month.
Intentionally failing to report income in a tax return can result in criminal charges.
correction
A previous version of this article incorrectly said that Rep. Kevin McCarthy is a Democrat. He is a Republican. This article has been corrected.
