Trump and IRS Negotiating Settlement Over $10 Billion Lawsuit
Lawyers representing Donald Trump and the Internal Revenue Service are currently engaged in negotiations aimed at settling a substantial $10 billion lawsuit filed by the U.S. president. This legal action stems from allegations that the IRS leaked Trump's tax returns to various media outlets during 2019 and 2020.
In a recent court filing submitted to a federal court in Miami, the legal teams requested a 90-day pause on the proceedings. They argued that this delay would facilitate discussions intended to resolve the matter amicably and prevent lengthy litigation. The lawyers noted that such a pause “could narrow or resolve the issues efficiently.”
Neither the White House nor the Department of Justice, which represents the IRS, provided comments on the ongoing discussions. A delay in proceedings could afford Justice Department attorneys additional time to navigate potential conflicts of interest, particularly since Trump is suing a government entity.
It’s noteworthy that Justice Department lawyers ultimately report to the president, while both the IRS and the Treasury Department, also named as defendants, fall under the executive branch.
In addition to Trump, his adult sons, Donald Trump Jr. and Eric Trump, along with the Trump Organization, are also plaintiffs in this case.
The lawsuit originated from the actions of former IRS contractor Charles Littlejohn, who leaked Trump’s tax returns to media organizations, including the New York Times and ProPublica. These documents revealed that Trump had paid minimal or no income taxes in several years, as reported by the Times in 2020.
Trump and his co-plaintiffs assert that these leaks resulted in significant financial damage, public embarrassment, and harm to their reputations. In 2023, prosecutors charged Littlejohn for leaking tax records of Trump and numerous other affluent individuals, alleging he acted out of a political motive. He later pleaded guilty to unauthorized disclosures and received a five-year prison sentence.
Should Trump succeed in his lawsuit, any financial compensation would likely come from taxpayer funds. Trump has indicated that he intends to donate any proceeds from this case to charity.
A spokesperson for Trump's legal team stated, “The IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information” to various “left-wing news outlets.” They emphasized that “President Trump continues to hold those who wrong America and Americans accountable.”
Since securing a second term in office in 2024, Trump has initiated numerous lawsuits in his personal capacity, often seeking large sums due to media reporting. He is also pursuing $15 billion from the New York Times and Penguin Random House over articles and a book he claims were designed to undermine his reelection efforts. Additionally, he has filed a $10 billion lawsuit against the BBC regarding its editing of his speech prior to the January 6 Capitol riot.
Recently, a judge dismissed Trump's $10 billion lawsuit against the Wall Street Journal concerning an article about a controversial birthday greeting for Jeffrey Epstein. The judge allowed Trump to refile his lawsuit by April 27, which he has stated he intends to do.
