Federal Judge Dismisses Trump’s $10 Billion Lawsuit Against IRS
In a surprising turn of events, a federal judge has dismissed a $10 billion lawsuit filed by former President Trump against the Internal Revenue Service (IRS). The suit, which was centered around the leak of Trump’s tax returns, was dropped at Trump’s own request.
Ethics watchdogs and Democratic members of Congress had shown interest in the lawsuit due to its unprecedented nature—being the first known case where a sitting president sued the government he led.
Shortly after the dismissal, the Department of Justice (DOJ) announced the establishment of an “anti-weaponization fund” amounting to $1.7 billion. The fund is designed to settle and pay cases, as per the DOJ’s statement.
U.S. District Judge Kathleen Williams, overseeing the case, allowed the plaintiff to withdraw the suit in accordance with court rules. However, she had previously expressed skepticism about the case’s merit, highlighting Trump’s dual role as both plaintiff and president.
Judge Williams also criticized the DOJ for not publicly disclosing details of the settlement, writing, “Defendants—federal agencies represented by the Department of Justice, which has an independent obligation to uphold the ‘public’s strong interest in knowing about the conduct of its Government and expenditure of its resources’ and the ‘fair administration of justice,’ — neither submitted any settlement documents nor filed any documents ensuring that settlement was appropriate where there was an outstanding question as to whether an actual case or controversy existed.”
The lawsuit, initiated by Trump and the Trump Organization in January, targeted the IRS and the Treasury Department over the leak of his tax returns from years prior. Legal experts have labeled the case as weak, identifying the leak’s source as a federal contractor rather than a full-time government employee. This individual is currently serving prison time for the offense.
There are questions regarding whether the statute of limitations might have expired, as the tax information leaks occurred between 2018 and 2020. The Justice Department has a process for evaluating claims from individuals who assert harm by the federal government, typically managed by career lawyers and rarely involving high-profile cases like Trump’s.
Rupa Bhattacharyya, a former Justice Department lawyer, pointed out that many cases are routine, involving issues like traffic accidents with postal vehicles or malpractice claims against Veterans Affairs doctors. Even in severe instances, such as those involving 9/11 cleanup efforts, payouts seldom exceed $10 million.
Edward Whelan, a well-known conservative lawyer, advised pausing the litigation until Trump is no longer in office, citing a “glaring conflict of interest” with Trump being involved on both sides of the claim. Whelan remarked, “It is outrageous that he and those answering to him would be deciding how the government responds to these extravagant claims.”
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