Trump Appeals Judge’s Decision on $10 Billion Lawsuit Against IRS
President Donald Trump initiated an appeal against a federal judge’s decision questioning the legitimacy of a lawsuit filed by him, his two sons, and the Trump Organization against the IRS. On July 13, U.S. District Judge Kathleen Williams deemed the $10 billion lawsuit as serving an “improper purpose.” This led to the Justice Department establishing a $1.8 billion “anti-weaponization” fund within a settlement, part of which was an agreement that the government would refrain from investigating or seeking payments from Trump or his family and businesses for pending tax issues.
The IRS did not immediately respond to questions regarding the planned appeal. Trump’s legal team, on Friday, criticized the IRS, claiming that a politically-motivated employee illicitly leaked confidential data regarding Trump, his family, and the Trump Organization to news media, which was subsequently “illegally disseminated” to millions.
A former IRS contractor admitted guilt in 2023 for pilfering Trump’s tax records alongside thousands of others during 2019 and 2020, and leaking them. This individual is currently serving a five-year prison sentence.
The president sued the IRS and Treasury Department in January, claiming the agency unlawfully released his tax records, leading to a New York Times report that Trump paid only $750 in federal taxes in 2016 and 2017.
Judge Williams, in her ruling, stated Trump sought to “manipulate the judicial process” rather than defend his rights, criticizing Trump’s way of suing the IRS over his leaked tax records. She highlighted Trump’s control over the Justice Department, Treasury Department, and IRS.
The ruling disallowed the Justice Department from depicting the settlement with Trump as a judicial agreement. Moreover, Judge Williams imposed sanctions on acting Attorney General Todd Blanche and Associate Attorney General Stanley Woodward while urging the Florida Bar Association to consider disciplinary action against one of Trump’s attorneys, Alejandro Brito.
The contentious settlement has caused a rift between two Republican senators and the Justice Department, halting a vote on Blanche’s nomination for attorney general. Senators John Cornyn of Texas and Thom Tillis of North Carolina demanded the DOJ permanently terminate the “anti-weaponization” fund and restrict the audit protection deal before consenting to advance Blanche’s nomination.
On Friday, Trump acknowledged the termination of the fund, expressing regret over its end but did not directly address questions regarding potential limits on the terms of the tax agreement applicable to him, his family, or his company.