Trump appeals judge ruling blocking $10 billion IRS lawsuit

President Donald Trump has appealed a federal judge's ruling that blocked a $10 billion lawsuit against the Internal Revenue Service and sharply criticized a related settlement that would have shielded him from tax audits and created a $1.8 billion government fund. The appeal, filed with the 11th Circuit Court of Appeals on Friday, July 31, 2026, challenges a July 13 decision by U.S. District Judge Kathleen Williams, who found the lawsuit was filed for an improper purpose.

The underlying case stems from a lawsuit Trump, his sons, and the Trump Organization filed in January against the IRS and Treasury Department. They alleged the agency was at fault for the unauthorized leak of Trump's tax records by a former contractor, Charles Littlejohn, who pleaded guilty in 2023. The leaked information was published in news reports stating Trump paid $750 in federal income taxes in 2016 and 2017.

In May, the Justice Department, representing the IRS, reached a settlement with Trump's legal team. The agreement included establishing a $1.8 billion "anti-weaponization fund" to compensate individuals claiming political targeting and, critically, a provision barring the IRS from auditing Trump,...