Trump settles $1.8bn IRS suit

President Donald Trump and the Justice Department settled his lawsuit against the Internal Revenue Service on May 18, ending a $10 billion case over the leak of his tax returns with a deal that created a $1.776 billion “Anti-Weaponization Fund.” The case had been filed in January by Trump, Eric Trump and the Trump Organization after the unauthorized disclosure of tax information by former IRS contractor Charles Littlejohn in 2019 and 2020. Trump and the other plaintiffs agreed to dismiss the suit with prejudice, meaning it cannot be refiled. The Justice Department said the plaintiffs will receive a formal apology but no direct monetary payment. ### How did a tax-return leak case end with a $1.776 billion fund? The Justice Department announced on May 18 that the settlement would establish the fund to compensate people Todd Blanche, the acting attorney general, described as victims of “lawfare and weaponization.” DOJ said the fund will be overseen by a five-person commission and process claims through mid-December 2028. Trump said at the White House that day that he knew “very little about it” and “wasn’t involved in the creation of it.” (politico.com) CNN’s review of the settlement documents said the fund was created as part of the agreement between the IRS, Trump, Eric Trump and the Trump Organization. CNN also reported that the commission members would be chosen by Trump’s attorney general and could be removed by the president at any time. ### What was the original lawsuit about? The Miami lawsuit centered on Charles E. (politico.com) Littlejohn, a former IRS contractor who disclosed tax records in 2019 and 2020. The complaint accused the IRS and Treasury Department of failing to safeguard Trump-related tax information. Thomson Reuters’ tax report said Littlejohn was later sentenced to five years in prison for the leak. (cnn.com) January 29, 2026, was the filing date for the suit by Trump, Donald Trump Jr., Eric Trump and the Trump Organization, according to Thomson Reuters’ account of the litigation. Politico reported that the case was dismissed on May 18, two days before a court deadline to address whether a sitting president could sue an agency under his own executive authority. Miami-based U.S. District Judge Kathleen Williams later closed the case. (tax.thomsonreuters.com) ### What changed on May 19? A one-page addendum posted by the Justice Department on May 19 broadened the settlement beyond the original agreement. Politico reported that the document, signed by Blanche, said the IRS was “forever barred and precluded” from pursuing examinations of Trump, related individuals, trusts and affiliated businesses for tax returns filed before the settlement date. (tax.thomsonreuters.com) The same Politico report said the addendum did not bear the signature of an IRS representative or current Trump lawyers. DOJ said in a statement that “both sides have executed waivers of a variety of claims that were or could have been brought” and added that the provision applied to “existing audits, not future.” ### Who has objected to the settlement? (politico.com) John Koskinen, the former IRS commissioner, called the expanded settlement a “terrible precedent” in a statement reported by Politico. Brandon DeBot, policy director at the Tax Law Center, said on May 22 that DOJ’s release “purports to put the President, his entities, and his family above the tax laws” and argued the department lacked authority to offer such broad audit protections on its own. (politico.com) CNN reported that critics described the arrangement as a slush fund for Trump allies and said at least one lawsuit had already been filed in federal court in Washington seeking to halt implementation of the fund. Thomson Reuters also reported that 93 House members filed an amicus brief urging dismissal of the underlying case on jurisdictional grounds before the settlement was filed. (politico.com) ### What, exactly, did Trump give up in return? The settlement required Trump to withdraw separate administrative damages claims tied to federal investigations, including claims linked to the Russia inquiry and the 2022 Mar-a-Lago search, according to DOJ’s description cited by Politico and CNN. CNN reported those administrative claims, totaling more than $230 million, must be withdrawn by June 15. The settlement also bars Trump, Eric Trump and the Trump Organization from bringing similar claims again. (cnn.com) June 15 is the next concrete date in the settlement documents. By then, CNN reported, Trump must withdraw the related administrative claims, while the separate Anti-Weaponization Fund will remain open to claims through mid-December 2028. (cnn.com) (politico.com)