Trump Prepares to Settle With IRS in Huge Lawsuit Over Tax Records
Donald Trump sued the IRS for $10 billion over the release of his tax records.

Donald Trump is in “discussions” to settle a $10 billion lawsuit with the Internal Revenue Service over the release of his tax returns.
The president’s lawyers asked a judge Friday to extend key deadlines on the multibillion lawsuit against his presidential administration, but hidden within the pages of the legal filing was a profound detail: that the president has been in talks with his own government staffers to “avoid protracted litigation.”
“Good cause exists to grant an extension in this matter while the Parties engage in discussions designed to resolve this matter and to avoid protracted litigation,” Trump’s lawyers argued. “This limited pause will neither prejudice the Parties nor delay ultimate resolution. Rather, the extension will promote judicial economy and allow the Parties to explore avenues that could narrow or resolve the issues efficiently.”
Any payment from Trump’s lawsuit against the government would be doled out to him via taxpayer funds.
The suit alleges that the IRS and Treasury Department during Trump’s first term did not do enough to thwart Charles Littlejohn, a former contractor for the IRS, from leaking the tax returns to the press. Littlejohn leaked 15 years of Trump’s tax returns to The New York Times in 2019. The documents were published by the paper of record the following year, in September 2020, two months before the presidential election.
Trump’s attorneys have argued that, despite the fact that Littlejohn was classed as a contractor, he acted as a “joint employee” of the two agencies. They further asserted that the government was liable for Littlejohn’s actions due to the IRS’s “extensive, detailed, day-to-day supervision” of his behavior.
The legal challenge has raised numerous ethical quandaries, chief among them the apparent conflict of interest in the case. Legal experts have questioned whether a president can sue his own administration to pocket taxpayer money, and have expressed doubts about whether Trump’s Justice Department can appropriately defend the financial institutions.
A group of former government officials filed an amicus brief in February that challenged the suit’s core claims. Those officials included former IRS Commissioner John Koskinen and former National Taxpayer Advocate Nina Olson. Together, the cohort argued that Trump’s lawsuit contains “significant legal flaws” and risks becoming “collusive litigation.”
This story has been updated.









