Trump’s lawyers seeking resolution of his $10 billion lawsuit against IRS and Treasury
Trump’s Legal Team Seeks 90-Day Extension to Resolve $10 Billion IRS and Treasury Lawsuit
Legal representatives of former President Donald Trump are currently in talks with the Internal Revenue Service (IRS) and the Department of the Treasury to address his $10 billion claim of confidential tax data being leaked by the agencies during his initial term in office. The legal team submitted a request on Friday for a 90-day reprieve, aiming to facilitate discussions and prevent prolonged litigation.
This limited pause will neither prejudice the Parties nor delay ultimate resolution. Rather, the extension will promote judicial economy and allow the Parties to explore avenues that could narrow or resolve the issues efficiently,
The lawsuit, filed by Trump in his individual capacity, has raised concerns about potential conflicts of interest, as he previously oversaw the agencies involved. If the case concludes with a financial settlement, the Trump administration would bear the cost of reimbursing him and his family.
Background on the Tax Information Leak
In January, Trump and his sons, Donald Trump Jr. and Eric Trump, initiated the legal action, alleging that the government failed to safeguard their private tax details. The information was reportedly disclosed to the press by Charles Littlejohn, a former IRS contractor. Littlejohn, who worked for Booz Allen Hamilton, was accused of illegally obtaining and sharing Trump’s tax returns with publications like the New York Times and ProPublica.
Littlejohn was sentenced to five years in prison in 2024 for leaking thousands of tax records without permission, including those of Trump and other affluent individuals. Trump’s attorneys argue that the IRS is legally accountable for these actions, citing Littlejohn’s staff-level access to sensitive data and the agency’s known security vulnerabilities, which remained unaddressed despite warnings.
Historical Context of Tax Return Controversies
During Trump’s first presidential term, his decision to withhold tax returns became a key point of contention for critics. In 2022, the House Ways and Means Committee released six years of his tax records after a legal dispute escalated to the Supreme Court.
CNN has sought comments from the Treasury Department and Justice Department, with the IRS deferring its response to the latter. The ongoing negotiations follow a recent controversy involving a $1 million settlement for Michael Flynn’s wrongful prosecution case, which also involved the Justice Department.
