DOJ Mulls Cashing Out Trump’s IRS Lawsuit: Taxpayer Dollars at Stake
The Department of Justice is eyeing a potential payout in Donald Trump’s explosive lawsuit against the IRS, a move that could see taxpayer dollars lining the former president's pockets, according to fresh reports.
In January, Trump launched a $10 billion lawsuit against the IRS and the Treasury Department, claiming they failed to safeguard his tax information from leaking during his presidency. Now, whispers of a settlement are swirling within the DOJ, as insiders reveal discussions are underway about what such a deal might entail.
One tantalizing option on the table? The IRS could halt any ongoing audits of Trump, his family, or his business empire, as reported by sources close to the situation.
“President Trump continues to hold those who wrong America and Americans accountable,” declared a spokesperson for Trump’s legal team, emphasizing their stance on the matter.
In a twist of irony, Trump previously told NBC News he would donate “100 percent” of any settlement windfall to charity if he wins this legal battle. But with former IRS contractor Charles Edward Littlejohn having leaked confidential tax data from 2018 to 2020, the stakes are high.
Littlejohn, who was employed by defense tech giant Booz Allen Hamilton, was sentenced to five years in prison in 2024 after pleading guilty to the leak. His actions have been described as causing “reputational and financial harm” to Trump and others involved, painting them in a false light and damaging their public image.
The clock is ticking as the court deadline looms. A judge has ordered Trump’s legal team and the DOJ—representing the IRS—to submit briefs by May 20 to clarify any conflicts in this unprecedented case.
This situation is particularly unique given that Trump oversees the IRS, raising questions about how two parties in a lawsuit can be on opposing sides. The outcome remains uncertain, but one thing is clear: the drama surrounding this case is far from over.
