Miami, Florida — A federal judge has signaled she may reopen President Donald Trump’s lawsuit against the Internal Revenue Service, raising questions about whether the case was used to facilitate a controversial $1.8 billion compensation fund.
U.S. District Judge Kathleen Williams ordered Trump’s legal team to respond to allegations that the lawsuit may have been filed for an improper purpose. The case centered on the disclosure of Trump’s 2019 and 2020 tax returns and sought $10 billion in damages from the IRS.
The scrutiny comes after Acting Attorney General Todd Blanche announced a settlement that included the creation of a nearly $1.8 billion “Anti-Weaponization Fund” intended to compensate alleged victims of government misconduct and political targeting.
Williams questioned whether the lawsuit was filed after the applicable two-year statute of limitations had expired. She also raised concerns about a settlement addendum that reportedly waived certain tax claims against Trump and his sons but was signed only by Blanche, potentially conflicting with Justice Department procedures.
The compensation fund has already faced separate legal challenges. Capitol Police officers and Justice Department prosecutors have filed lawsuits seeking to block the program, arguing that individuals involved in the January 6, 2021 Capitol attack could potentially benefit from payouts. Another federal judge recently ordered a temporary pause on establishing the fund while litigation proceeds.
Williams has not yet decided whether to formally reopen the case, but her order increases legal uncertainty surrounding both the lawsuit and the compensation fund.
Sources:
- CBS News – MBFC Rating
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