{"id":602,"date":"2026-05-20T16:35:45","date_gmt":"2026-05-20T16:35:45","guid":{"rendered":"https:\/\/tucsonmovingreport.com\/?p=602"},"modified":"2026-05-20T16:35:45","modified_gmt":"2026-05-20T16:35:45","slug":"us-government-agrees-to-drop-tax-claims-against-trump-in-broadening-of-irs-lawsuit-settlement","status":"publish","type":"post","link":"https:\/\/tucsonmovingreport.com\/?p=602","title":{"rendered":"US government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement"},"content":{"rendered":"
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WASHINGTON (AP) \u2014 The U.S. government will permanently drop tax claims against\u00a0President Donald Trump, according to a settlement document made public Tuesday, in an extraordinary use of executive power that could effectively help shield the president from further examination of his finances and legal conduct.<\/p>\n

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As part of the settlement deal meant to resolve Trump\u2019s $10 billion\u00a0lawsuit against the Internal Revenue Service\u00a0over the leak of his tax returns, the U.S. is \u201cforever barred and precluded\u201d from examining or prosecuting Trump, his sons and the Trump organization\u2019s current tax examinations, according to a\u00a0one-page document\u00a0posted to the Justice Department\u2019s website.<\/p>\n

The government is also barred from looking into Trump\u2019s family, affiliates and others, according to the document, which is signed by acting Attorney General Todd Blanche. That document is a separate addendum from\u00a0the original settlement\u00a0announced Monday, and was quietly added to the Justice Department website on Tuesday.<\/p>\n

The White House referred Associated Press inquiries to the Justice Department, and the U.S. Treasury did not respond to Associated Press requests for comment.<\/p>\n

The settlement refers only to existing audits, not future examinations, the Justice Department said in response to a request for comment on the expanded settlement.<\/p>\n

The move comes after the Trump administration announced Monday, as part of the lawsuit settlement, the creation of a nearly\u00a0$1.8 billion fund\u00a0to compensate allies of the Republican president who believe they have been unjustly investigated and prosecuted, an arrangement that Democrats and government watchdogs criticize as \u201ccorrupt\u201d and unconstitutional.<\/p>\n

The \u201cAnti-Weaponization Fund\u201d of $1.776 billion will allow people who believe they were targeted for prosecution for political purposes, including by the Biden administration Justice Department, to apply for payouts, creating what Blanche called \u201ca lawful process for victims of lawfare and weaponization to be heard and seek redress.\u201d<\/p>\n

Blanche, who was\u00a0grilled by lawmakers on Capitol Hill on Tuesday,\u00a0would not rule out the possibility that people who carried out violence during the\u00a0Jan. 6, 2021, riot at the U.S. Capitol\u00a0will be considered for payouts from the new fund.<\/p>\n

Democratic lawmakers and ethics watchdogs slammed the creation of the fund, saying it was corrupt, opaque and had the potential to become a \u201cslush fund\u201d for the president and his allies. Even Republican lawmakers have expressed signs of discomfort about the fund\u2019s creation, including Senate Majority Leader John Thune, who told reporters that he\u2019s \u201cnot a big fan.\u201d<\/p>\n

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Trump told reporters at the White House on Monday that the fund is dedicated to \u201creimbursing people who were horribly treated.\u201d<\/p>\n

Daniel Werfel, a former IRS Commissioner during the Biden administration, said he was unaware of instances where the IRS agreed in advance \u201cto permanently forgo examination of previously filed tax returns for a specific person or business.\u201d<\/p>\n

He said the arrangement granted Trump and his family separate tax rules from other Americans.<\/p>\n

\u201cWhether you are the president or Joe the Plumber, people expect the same tax rules and enforcement framework to apply to everybody.\u201d<\/p>\n

The fund was announced after Trump, his sons Eric Trump and Donald Trump Jr., and the Trump Organization agreed to drop their lawsuit against the IRS and the Treasury Department. The lawsuit alleged that a leak of confidential tax records caused them reputational and financial harm and negatively affected their public standing, among other allegations.<\/p>\n

According to the original\u00a0settlement agreement\u00a0posted to the Justice Department website Monday, Trump will receive a formal apology from the U.S. government but \u201cwill not receive any monetary payment or damages of any kind\u201d from the settlement. Still, the discharge of current potential tax claims could provide protection against any possible outstanding tax liabilities.<\/p>\n

Kathleen Williams, the judge handling the lawsuit, dismissed the case on Monday and, in her filing, admonished the government agencies, notably the Justice Department, for failing to be transparent about the settlement.<\/p>\n

She said no agency \u201csubmitted any settlement documents nor filed any documents ensuring that settlement was appropriate where there was an outstanding question as to whether an actual case or controversy existed.\u201d<\/p>\n

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___<\/p>\n

Associated Press writer Alanna Durkin Richer contributed to this report.<\/p>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The U.S. government has agreed to permanently drop tax claims against President Donald Trump, according to a settlement document that is part of a deal to resolve Trump\u2019s $10 billion lawsuit against the IRS.<\/p>\n","protected":false},"author":1,"featured_media":601,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nUS government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement - Tucson Moving Report<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tucsonmovingreport.com\/?p=602\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement - 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