Trump Sues IRS Over Tax Leak, Seeks Settlement

Lawyers for the former president are in talks with the tax agency to resolve a $10 billion lawsuit.

Apr. 17, 2026 at 7:25pm

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A dimly lit, cinematic painting of an empty government office space, with warm sunlight streaming through the windows and deep shadows covering the desks and chairs, conveying a sense of political tension and unease.The legal battle between a former president and his own tax collection agency raises ethical concerns about the use of government power for personal gain.Washington Today

Former President Donald Trump has filed a $10 billion lawsuit against the IRS over the leak of his tax information to news outlets between 2018 and 2020. Trump's lawyers are now in talks with the IRS to try and reach a settlement or resolution to the case, according to a federal court filing.

Why it matters

The lawsuit raises ethical questions about the propriety of a former president suing the government agency he once oversaw. Tax and ethics experts say the case could set a concerning precedent if a sitting or former president is able to use the courts to target government entities for perceived wrongs.

The details

In the lawsuit, Trump alleges the leak of his and the Trump Organization's confidential tax records caused "reputational and financial harm, public embarrassment, [and] unfairly tarnished their business reputations." Trump's sons, Donald Trump Jr. and Eric Trump, are also plaintiffs. In 2024, a former IRS contractor was sentenced to 5 years in prison for leaking Trump's tax info to news outlets.

  • In 2018-2020, Trump's tax information was leaked to news outlets.
  • In 2024, the former IRS contractor was sentenced to 5 years in prison for the leaks.
  • On April 17, 2026, Trump's lawyers filed a motion to pause the $10 billion lawsuit for 90 days to work on a settlement.

The players

Donald Trump

The former president of the United States who filed a $10 billion lawsuit against the IRS over the leak of his tax information.

Donald Trump Jr.

The son of Donald Trump who is a plaintiff in the lawsuit against the IRS.

Eric Trump

The son of Donald Trump who is a plaintiff in the lawsuit against the IRS.

Charles Edward Littlejohn

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

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What they’re saying

“I think what we'll do is do something for charity. 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 judge will decide whether to grant the 90-day pause in the lawsuit to allow Trump's lawyers and the IRS to negotiate a settlement.

The takeaway

This case highlights the complex ethical and legal issues that can arise when a sitting or former president pursues litigation against the very government agencies they once oversaw. The outcome could set an important precedent for how such disputes are handled in the future.