Judge Reopens $10 Billion IRS Lawsuit, Orders Response

A federal judge has reopened a $10 billion lawsuit filed by President Donald Trump against the Internal Revenue Service, ordering his lawyers to respond to allegations that the settlement of the case was fraudulent. The order, issued Friday by U.S. District Judge Kathleen Williams in Miami, directs the president's legal team to address claims that the dismissal of the suit was "premised on deception" and to explain whether the court was "the victim of a fraud."

Judge Williams' decision came in response to a motion filed Wednesday by a bipartisan group of 35 retired federal judges. They argued the lawsuit, which Trump voluntarily dismissed last week, was collusive from the start and was filed solely to provide legal cover for an unlawful settlement. That settlement, announced by the Justice Department after the dismissal, created a $1.776 billion "Anti-Weaponization Fund" to compensate individuals who claim they were wrongly targeted by the government. The agreement also includes provisions permanently shielding Trump, his family, and his business from IRS audits related to the tax returns at issue in the case.

The original lawsuit, filed in January by Trump, his two eldest sons,...