President Trump moved to dismiss his lawsuit against the Internal Revenue Service over the leak of his tax returns, with reports indicating a $1.7 billion settlement fund for political allies.
1:15 PM
President Donald Trump on Monday moved to dismiss his $10 billion lawsuit against the Internal Revenue Service, withdrawing claims over the leak of his tax returns amid reports that his administration is considering a settlement with the federal government.
The lawsuit, filed in Miami federal court in January in Trump's personal capacity, had accused the IRS and Treasury Department of unlawfully allowing a government contractor to leak his tax returns and those of his sons, Eric Trump and Donald Trump Jr., as well as those of the Trump Organization. The suit alleged the agencies mishandled his tax returns, leading to their improper disclosure to media outlets in 2020.
According to reports, the settlement under consideration would create a fund exceeding $1.7 billion to compensate Trump's political allies who believe they have been wrongly investigated and prosecuted by the federal government. A spokesperson for the Justice Department and Trump's legal team did not immediately respond to requests for comment on the terms of the settlement.
The Monday filing came two days before a May 20 deadline in which the judge overseeing the case had asked the parties for briefing on whether a legitimate controversy existed—a requirement for any lawsuit—because Trump controls the IRS.
Democrats and government watchdogs immediately pledged to fight what they characterized as a "corrupt" and unprecedented resolution, warning that the arrangement would unjustly enrich political allies. The settlement proposal drew criticism from those who viewed it as an improper use of federal funds.
Trump's sons, Eric Trump and Donald Trump Jr., and the Trump Organization were also listed as plaintiffs in the original suit. The case had been pending in federal court since its January filing.
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