Judge Criticizes Trump’s Lawsuit Against IRS, Calls It Self-Dealing

U.S. District Judge Kathleen Williams criticized the lawsuit filed by President Donald Trump against the Internal Revenue Service (IRS). The judge described the lawsuit as being filed for an “improper purpose.” The decision included a referral for disciplinary action against one of Trump’s lawyers. It characterized the $10 billion complaint as self-serving.

Judge Williams accused Trump of manipulating the judicial process. He sued a federal agency under his control and bypassed the requirement that parties in a lawsuit must have conflicting interests. This move laid the groundwork for a settlement last spring, granting Trump immunity from tax audits and setting up a fund to compensate his allies.

Despite the administration’s public declaration that the $1.776 billion Anti-Weaponization Fund has been abandoned, the judge’s ruling offers a strong criticism of the Trump administration. The ruling revives a politically sensitive issue for Acting Attorney General Todd Blanche, who is preparing for his Senate Judiciary Committee confirmation hearing.

“The nature of the suit itself and the conduct of the Parties and counsel from its filing make plain that this was an attempt to use the Court to provide some legitimacy to an agreement to confer immunity to people and entities affiliated with the President,” wrote Williams. “The President may be the functional ‘dominus litus’ of the Executive Branch, but as a party to a civil suit, he, as well as all the parties and lawyers before a court, are bound by the rules.”

Judge Williams emphasized that ensuring courts are used only for the purposes intended by the Constitution is a judge’s duty. This obligation is particularly important in light of the current case.

The judge also referred to Blanche’s earlier congressional testimony. In June, Blanche disclosed that the fund was no longer advancing due to bipartisan opposition. Although nothing was filed in court, Blanche presented confidence in his testimony, claiming he could represent both sides in this matter.

“Acting Attorney General Blanche’s apparent capacity to speak for both Plaintiffs and Defendants, sign a ‘settlement’ document on behalf of all Parties to this action, and then repudiate part of that agreement, demonstrates that there was only one party whose interests were being represented throughout this case,” the judge wrote.

Associated Press writers Fatima Hussein and Michelle L. Price contributed to this report.