{"id":911,"date":"2026-05-19T13:34:06","date_gmt":"2026-05-19T20:34:06","guid":{"rendered":"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/05\/19\/us-government-agrees-to-drop-tax-claims-against-trump-in-broadening-of-irs-lawsuit-settlement\/"},"modified":"2026-05-19T13:34:06","modified_gmt":"2026-05-19T20:34:06","slug":"us-government-agrees-to-drop-tax-claims-against-trump-in-broadening-of-irs-lawsuit-settlement","status":"publish","type":"post","link":"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/05\/19\/us-government-agrees-to-drop-tax-claims-against-trump-in-broadening-of-irs-lawsuit-settlement\/","title":{"rendered":"US government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement"},"content":{"rendered":"
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WASHINGTON (AP) \u2014 The U.S. government will permanently drop tax claims against President Donald Trump, according to a settlement document that is part of a deal to resolve Trump\u2019s $10 billion\u00a0lawsuit against the Internal Revenue Service\u00a0over the leak of his tax returns.<\/p>\n

Read more Trump shows reporters ballroom construction site as lawmakers balk at $1B for White House security<\/a><\/p>\n

As part of the settlement agreement, the U.S. is \u201cforever barred and precluded\u201d from examining or prosecuting Trump, his sons and the Trump organization\u2019s current tax issues, according to a one-page document posted to the Justice Department\u2019s website on Tuesday.<\/p>\n

The settlement, which marks an extraordinary use of executive power, goes beyond resolving litigation and effectively helps shield the president from further examination of his finances and legal conduct.<\/p>\n

The move comes after the Trump administration announced Monday the creation of a nearly\u00a0$1.8 billion fund\u00a0to compensate allies of the Republican president who believe they have been unjustly investigated and prosecuted, an arrangement that Democrats and government watchdogs derided as \u201ccorrupt\u201d and unconstitutional.<\/p>\n

The \u201cAnti-Weaponization Fund\u201d of $1.776 billion will allow people who believe they were targeted for prosecution for political purposes, including by the Biden administration Justice Department, to apply for payouts, creating what acting Attorney General Todd Blanche called \u201ca lawful process for victims of lawfare and weaponization to be heard and seek redress.\u201d<\/p>\n

Blanche, who was grilled by lawmakers on Capitol Hill on Tuesday, would not rule out the possibility that people who carried out violence during the\u00a0Jan. 6, 2021, riot at the U.S. Capitol\u00a0will be considered for payouts from the new fund.<\/p>\n

Democratic lawmakers and ethics watchdogs slammed the creation of the fund, saying it was corrupt, opaque and had the potential to become a \u201cslush fund\u201d for the president and his allies.<\/p>\n

Read more Democratic-led states challenge the Trump administration\u2019s new caps on federal student loans<\/a><\/p>\n

\n<\/div>\n

Sen. Ron Wyden, D-Ore., said Democrats intend to \u201cfight every element of this self-dealing settlement.\u201d<\/p>\n

\u201cNot only is this another heinously corrupt act by the most corrupt administration in history, it\u2019s clearly a violation of the law that prohibits interference by executive branch officials in IRS audits.\u201d<\/p>\n

The fund was announced after Trump, his sons Eric Trump and Donald Trump Jr., and the Trump Organization agreed to drop their lawsuit against the IRS and the Treasury Department. The lawsuit alleged that a leak of confidential tax records caused them reputational and financial harm and negatively affected their public standing, among other allegations.<\/p>\n

According to a separate settlement agreement posted to the Justice Department website Monday, Trump will receive a formal apology from the U.S. government but \u201cwill not receive any monetary payment or damages of any kind,\u201d from the settlement.<\/p>\n

\n<\/div>\n

Trump told reporters at the White House on Monday that the fund is dedicated to \u201creimbursing people who were horribly treated.\u201d<\/p>\n

Read more Appeals court judges appear to be divided over Pentagon\u2019s legal dispute with AI company Anthropic<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The document says the U.S. is \u201cforever barred and precluded\u201d from examining or prosecuting Trump, his sons and the Trump organization\u2019s current tax issues, states the one-page document posted to the DOJ website, Tuesday.<\/p>\n","protected":false},"author":1,"featured_media":910,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national-politics"],"yoast_head":"\nUS government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement - Los Angeles Moving Insider<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/05\/19\/us-government-agrees-to-drop-tax-claims-against-trump-in-broadening-of-irs-lawsuit-settlement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement - 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