DOJ Considers Settlement in Trump's $10B IRS Suit

The Justice Department is considering a settlement in President Donald Trump's $10 billion lawsuit against the Internal Revenue Service and Treasury Department, filed in federal court in Florida in January, according to people familiar with the internal discussions.

Trump, along with his sons Donald Trump Jr. and Eric Trump, brought the suit in their personal capacities, alleging the agencies failed to protect confidential tax information from the Trump Organization. The lawsuit stems from leaks during Trump's first term by Charles Littlejohn, a former IRS contractor with Booz Allen Hamilton. Littlejohn disclosed tax returns to news organizations including The New York Times and ProPublica between 2018 and 2020. He pleaded guilty to unauthorized disclosures and was sentenced to five years in prison in 2024.

Among the settlement options under review, according to two people familiar with the matter, is a provision for the IRS to drop any ongoing audits of Trump, his family members, and their businesses. No decisions have been reached, and it remains unclear whether a monetary payment would be included. A spokesman for Trump's legal team stated, "The IRS wrongly allowed a rogue,...