Miami, Florida — A federal judge blocked President Donald Trump from using a proposed IRS settlement to avoid scrutiny over past tax filings, ruling that the agreement lacked a proper legal basis.
U.S. District Judge Kathleen Williams found that Trump, his family members, and the federal government were not genuinely adverse parties when they sought to settle Trump’s $10 billion lawsuit over the leak of his tax records. The lawsuit stemmed from disclosures by former IRS contractor Charles Littlejohn, who pleaded guilty in 2023 to leaking Trump’s tax information and records involving other wealthy taxpayers.
The proposed settlement would have barred audits of Trump, his adult children, and related entities for past filings. It also originally included a $1.776 billion “Anti-Weaponization Fund,” though the Justice Department later said that fund would not move forward after bipartisan backlash.
Williams wrote that the case was brought for an improper purpose and said the court would not give legal legitimacy to a settlement with no viable basis in law or fact. She barred Trump and the government from citing the agreement in future proceedings and ordered sanctions against attorneys involved in the case.
The Justice Department has not said whether it will appeal.
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