Judge Strikes Down Trump’s $1.8bn IRS Settlement
In a major reversal, US District Judge Kathleen Williams voided a legal agreement that had granted former President Donald Trump immunity from IRS audits and set up a now abandoned £1.3bn ($1.8bn) “anti‑weaponisation” fund.
The fund was announced in May in exchange for Trump dropping a $10bn lawsuit against the Internal Revenue Service. The judge ruled the suit was filed for improper purpose and described it as lacking legitimate dispute between parties.
Williams said the settlement had “provided legitimacy to an agreement that conferred immunity to people and entities affiliated with the President and earmarked billions of dollars from taxpayers to redress grievances not defined in law.” The decision prevents anyone associated with the case—Trump and his sons—from citing the settlement in future proceedings.
Trump’s lawsuit alleged that a former IRS contractor leaked his private tax information just before the 2020 election, sparking a New York Times investigation that revealed he paid only $750 in federal taxes that year and none in ten of the previous fifteen years. The judge noted Trump refrained from pursuing the claim until returning to office and appointing former lawyer Alejandro Brito to key positions, calling the negotiation “risible” and lacking adversarial nature.
The ruling also referred a Trump lawyer to the Florida Bar for potential disciplinary action, and barred a second attorney from practising in the Southern District of Florida for a year. Trump’s legal team condemned the decision as a politically motivated leak that wronged America.
Tax Law Center policy director Brandon DeBot called the settlement a “sweetheart deal” that undermines the tax system’s safeguards against political interference. He stressed the court’s decision does not eliminate the need for congressional legislation to nullify the deal and prevent future presidential self‑dealing.
The anti‑weaponisation fund plans were abandoned early June, a week after a judge temporarily barred Justice Department officials from implementing it following lawsuits from individuals alleging discrimination for political retribution.
