Advertisment Image

Trump Drops $10 Billion Lawsuit Against IRS Over Leaked Tax Returns

Man in suit throwing legal documents labeled 'Lawsuit IRS' outside city court with media present

President Donald Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization voluntarily dismissed their $10 billion lawsuit against the IRS on May 18, 2026. The dismissal was with prejudice, so the claims cannot be refiled.

The suit, filed in late January in federal court in Miami, concerned the leak of Trump’s tax information by IRS contractor Charles “Chaz” Littlejohn in 2019 and 2020.

In exchange, the Justice Department created a $1.776 billion “Anti-Weaponization Fund” to settle claims from people who say they were targets of government “lawfare.” Trump also withdrew two administrative claims. The fund is set to stop processing claims by December 15, 2028.

The dismissal came two days before a deadline from U.S. District Judge Kathleen Williams, who had asked whether a real legal dispute existed between the president and agencies under his control.

Sources: CNBC

Editor’s note: This article was updated on October 17, 2026 to correct factual errors, including officials’ titles and event details, and to add source links.

Leave a Reply

Your email address will not be published. Required fields are marked *