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Trump Sues IRS and Treasury for $10 Billion Over Tax Leak
The former president alleges the agencies failed to prevent the disclosure of his confidential tax records.
Jan. 30, 2026 at 2:55am
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Former President Donald Trump is suing the IRS and Treasury Department for $10 billion, accusing the federal agencies of failing to prevent the leak of his and the Trump Organization's confidential tax records to news outlets between 2018 and 2020. The lawsuit, which also names Trump's sons Eric and Donald Jr. as plaintiffs, alleges the disclosures caused "reputational and financial harm, public embarrassment, [and] unfairly tarnished their business reputations."
Why it matters
The case highlights ongoing tensions between Trump and federal agencies over the disclosure of his tax information, which has been a source of controversy and legal battles for years. It also raises questions about data security practices at government contractors with access to sensitive taxpayer data.
The details
In 2024, former IRS contractor Charles Edward Littlejohn was sentenced to five years in prison for leaking Trump's tax information, as well as data on other wealthy individuals like Jeff Bezos and Elon Musk, to The New York Times and ProPublica between 2018 and 2020. The Treasury Department later announced it had cut contracts with Littlejohn's employer, Booz Allen Hamilton, citing the firm's failure to implement adequate safeguards to protect sensitive data.
- Littlejohn leaked Trump's tax data to news outlets between 2018 and 2020.
- Littlejohn was sentenced to 5 years in prison in 2024 for the leaks.
- The Treasury Department announced it had cut contracts with Booz Allen Hamilton earlier this week.
The players
Donald Trump
The former president and one of the plaintiffs in the lawsuit against the IRS and Treasury Department.
Eric Trump
One of the plaintiffs in the lawsuit alongside his father, Donald Trump, and brother, Donald Trump Jr.
Donald Trump Jr.
One of the plaintiffs in the lawsuit alongside his father, Donald Trump, and brother, Eric Trump.
Charles Edward Littlejohn
A former IRS contractor who worked for Booz Allen Hamilton and was sentenced to 5 years in prison for leaking Trump's tax information to news outlets.
Booz Allen Hamilton
A defense and national security tech firm that employed Littlejohn and had its contracts with the Treasury Department cut after the data leaks.
What they’re saying
“Treasury Secretary Scott Bessent said at the time of the announcement that the firm 'failed to implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service.'”
— Scott Bessent, Treasury Secretary
What’s next
The judge in the case will decide on whether to allow the lawsuit to proceed.
The takeaway
This lawsuit underscores the ongoing tensions between Trump and federal agencies over the disclosure of his tax information, as well as the importance of robust data security practices at government contractors with access to sensitive taxpayer data.
