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Trump Sues IRS for $10 Billion Over Tax Data Leaks
Former federal officials warn lawsuit threatens integrity of justice system
Feb. 6, 2026 at 8:55am
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Former senior federal tax officials have warned that President Donald Trump's $10 billion lawsuit against the Internal Revenue Service (IRS) threatens the integrity of the courts because he "effectively controls both sides of the case." Trump, his sons, and the Trump Organization are suing the IRS and Treasury over historic leaks of confidential tax data to news outlets between 2018 and 2020, alleging reputational and financial harm.
Why it matters
The lawsuit raises concerns about the potential for "collusive litigation" that could undermine public trust, as Trump controls both the plaintiff side as well as the Justice Department that would normally defend the government. There are also questions about the timeliness of the claims and the appropriateness of the $10 billion damages sought.
The details
An amicus brief filed by four former senior federal tax officials urges the court to closely manage the case, including addressing jurisdiction, conflicts of interest, and potentially appointing independent amici to argue key issues. The brief argues the claim is time-barred, improperly targets the government for a contractor's actions, and seeks "unsupported and excessive" damages.
- In 2023, former IRS contractor Charles 'Chaz' Littlejohn pleaded guilty to stealing and disclosing confidential tax data.
- Littlejohn provided data to The New York Times and ProPublica, leading to a 2020 report that Trump paid $750 in federal income tax in 2016.
- Trump filed the $10 billion lawsuit against the IRS and Treasury in February 2026.
The players
Donald Trump
The former president of the United States and lead plaintiff in the lawsuit against the IRS.
Donald Trump Jr.
One of Trump's sons named as a plaintiff in the lawsuit.
Eric Trump
One of Trump's sons named as a plaintiff in the lawsuit.
The Trump Organization
The family business named as a plaintiff in the lawsuit.
Charles 'Chaz' Littlejohn
A former IRS contractor who pleaded guilty in 2023 to stealing and disclosing confidential tax data.
What they’re saying
“Defendants have caused Plaintiffs reputational and financial harm, public embarrassment, unfairly tarnished their business reputations, portrayed them in a false light, and negatively affected President Trump, and the other Plaintiffs' public standing.”
— Donald Trump
“I'm supposed to work out a settlement with myself.”
— Donald Trump
“We could make it a substantial amount. Nobody would care because it's going to go to numerous very good charities.”
— Donald Trump
What’s next
The court will consider whether to accept the amici's recommendations, including an order to show cause on jurisdiction and conflicts, potential appointment of independent amici, and whether to stay proceedings until Trump leaves office. Future filings will address the statute of limitations, the government's liability for a contractor's actions, and whether the $10 billion demand is legally sustainable or should be struck at the pleading stage.
The takeaway
This case highlights the potential for conflicts of interest and the erosion of public trust when a sitting president effectively controls both sides of a high-stakes legal dispute against the government. It raises broader questions about the integrity of the justice system and the appropriate boundaries for executive power.
