Trump Sues IRS for $10 Billion Over Tax Leak

Lawsuit raises conflict of interest concerns as Trump targets government agency he oversees

Published on Feb. 3, 2026

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Former President Donald Trump has filed a $10 billion lawsuit against the IRS over the leak of his tax information, which he claims caused "reputational and financial harm, public embarrassment, [and] unfairly tarnished their business reputations." The lawsuit includes Trump's sons Donald Jr. and Eric as plaintiffs. Legal experts question the propriety of the former president pursuing such aggressive litigation against the government agency he once led.

Why it matters

The lawsuit raises ethical concerns about a former president using the courts to target a government agency under his purview. It also sets a potential precedent for other wealthy individuals to seek compensation from the government over leaked tax information.

The details

In 2024, former IRS contractor Charles Edward Littlejohn was sentenced to 5 years in prison for leaking Trump's and others' tax records to news outlets between 2018-2020. The leak violated IRS Code 6103, which provides a legal remedy including a minimum of $1,000 per disclosure. Trump is seeking punitive damages beyond the minimum, though experts question the $10 billion figure and whether he can demonstrate real harm given his business deals since leaving office.

  • In 2024, former IRS contractor Charles Edward Littlejohn was sentenced to 5 years in prison for the tax leaks.
  • The lawsuit was filed by Trump on Thursday, February 2, 2026.

The players

Donald Trump

The former president of the United States and the lead plaintiff in the lawsuit against the IRS.

Donald Trump Jr.

One of the plaintiffs in the lawsuit against the IRS along with his brother Eric Trump.

Eric Trump

One of the plaintiffs in the lawsuit against the IRS along with his brother Donald Trump Jr.

Charles Edward Littlejohn

A former IRS contractor who was sentenced to 5 years in prison in 2024 for leaking Trump's and others' tax records to news outlets.

David Gair

A tax attorney with Troutman Pepper Locke in Dallas who represents individuals whose tax information was included in the Littlejohn leak.

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What they’re saying

“People are saying, well, if he can do it, then why can't I do it? And so I think you will have a lot more people filing similar lawsuits, thinking that they might be able to piggyback on what he's doing.”

— David Gair, Tax attorney (The Associated Press)

“Even if an unbiased judge rightly rejects Trump's demands as preposterous, there is a great danger that the IRS would 'agree' to settle and pay out an enormous sum of taxpayer dollars to Trump.”

— Amy Hanauer, Executive director, Institute on Taxation and Economic Policy (The Associated Press)

What’s next

The judge in the case will decide whether to allow the lawsuit to proceed and if Trump can demonstrate sufficient harm to justify the $10 billion in damages he is seeking.

The takeaway

This lawsuit highlights the potential conflicts of interest and ethical concerns that can arise when a former president uses the legal system to target a government agency they once oversaw. It also raises questions about whether other wealthy individuals will seek similar compensation from the government over leaked tax information.