U.S. Government Drops Tax Claims Against President Trump in IRS Settlement

The U.S. government will permanently drop tax claims against President Trump under an expanded settlement agreement posted to the Justice Department website on Tuesday. Acting Attorney General Todd Blanche signed the order that bars the IRS from examining or prosecuting claims tied to Trump, his family members, trusts and related companies.

The document states the United States is "FOREVER BARRED and PRECLUDED" from pursuing related actions against the plaintiffs.

Settlement Details The order stems from Trump v.

Internal Revenue Service, a case filed in the Southern District of Florida. It expands an initial settlement announced Monday that resolved the lawsuit over the leak of Trump’s tax returns. The settlement provides a formal apology from the government but no monetary payment to Trump.

The agreement also establishes a nearly $1.8 billion "Anti-Weaponization Fund" to compensate people who believe they were targeted for prosecution for political purposes. Acting Attorney General Todd Blanche described the fund as a lawful process for victims of lawfare and weaponization to seek redress.

The fund allows applicants who claim they were unjustly investigated, including during the prior administration, to apply for payouts. Democratic lawmakers and government watchdogs have criticized the fund as corrupt and opaque, while some Republican lawmakers have expressed discomfort.

The settlement refers only to existing audits and does not address future examinations, according to the Justice Department.