Miami, Florida — President Donald Trump has voluntarily dismissed his $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns, according to a federal court filing submitted Monday in Miami.
Trump originally filed the lawsuit in January, accusing the IRS of failing to prevent former contractor Charles Littlejohn from illegally disclosing his tax return information from 2019 and 2020. Littlejohn later pleaded guilty to leaking confidential tax records involving Trump and other wealthy Americans and was sentenced to five years in prison.
The dismissal was filed “with prejudice,” meaning the case cannot be refiled in the future.
The move follows questions raised by U.S. District Judge Kathleen Williams regarding whether the lawsuit represented a legitimate legal dispute while Trump serves as president. Last month, Williams wrote that it was unclear whether the federal government and the president were “truly antagonistic” parties in the case and scheduled a hearing to examine the issue further.
Reuters and other outlets reported that Justice Department officials were discussing a possible settlement tied to a broader compensation fund for Trump allies who claim they were unfairly targeted during the Biden administration. Reports suggested the proposed fund could total roughly $1.7 billion, though federal officials declined public comment on the negotiations.
The dismissal closes one of several legal actions Trump has pursued involving investigations, disclosures, and prosecutions connected to his finances and political activities.
The White House and Justice Department have not released additional details regarding any related settlement discussions.
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