Trump Settles IRS Lawsuit, Creates $1.776 Billion Fund for Alleged Lawfare Victims
President Trump reached a settlement with the IRS over a 2019 tax-return leak. The agreement establishes a Department of Justice fund and bars future IRS audits of Trump, his family, and their businesses.
The DispatchThe suit concerned the 2019 leak of his tax returns. Under the settlement, the Department of Justice created a $1.776 billion fund to provide formal apologies and monetary relief to individuals described as victims of weaponization and lawfare. The terms state that neither Trump nor any family members may receive payments from the fund.
Tuesday, acting Attorney General Todd Blanche issued an addendum to the settlement. The addendum prohibits the IRS from auditing past tax returns of Trump, his family, or their businesses. The Dispatch reported that Blanche previously served as Trump’s personal lawyer. Federal law assigns the attorney general authority to direct the IRS to end audits.
Legal analysts Sarah Isgur and David French discussed the settlement on the Advisory Opinions podcast Thursday. They examined whether the agreement could qualify as a private-citizen settlement, a class action, or compensation for future claimants. Isgur stated that the arrangement does not clearly fit any of those categories.
She also noted concerns about transferring congressional appropriations authority to the executive branch. The settlement follows earlier public discussion of potential conflicts of interest involving the attorney general’s dual roles.
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