DOJ Considers Settling Trump's $10 Billion IRS Lawsuit Over Tax Leak
The Department of Justice is reportedly considering a settlement for former President Donald Trump’s $10 billion lawsuit against the Internal Revenue Service and the Treasury Department. Filed in January, the suit alleges that federal agencies failed to prevent the leak of Trump’s confidential tax records by former IRS contractor Charles Edward Littlejohn during his first term. According to The New York Times, internal discussions include potential terms such as ending all audits of Trump, his family, and his businesses. This development raises significant ethical concerns as Trump currently serves as president, overseeing the very agencies he is suing. While Trump previously stated he would donate any settlement funds to charity, critics argue the move could direct taxpayer money to the president. The settlement talks occur ahead of a May 20 court deadline requiring both parties to address conflicts of interest. The case stems from leaks published by The New York Times and ProPublica, which revealed inconsistencies in Trump’s financial records and minimal income tax payments prior to 2020. Littlejohn was sentenced to five years in prison in 2024 for the breach.
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