Inside the $10 Billion Lawsuit Between Donald Trump and the IRS
President Donald Trump’s legal team and the Internal Revenue Service are now in settlement discussions over a $10 billion lawsuit stemming from leaked tax returns.
The case dates back to 2019 and 2020, when an IRS contractor named Charles Littlejohn leaked Trump’s private tax filings to media outlets including The New York Times and ProPublica. Those reports revealed that Trump had paid little or no income taxes in several years. Littlejohn later pleaded guilty and received a five‑year prison sentence.
Trump, along with his adult sons and the Trump Organization, sued the IRS, arguing the leaks caused financial harm, public embarrassment, and reputational damage. Any potential payout would likely come from taxpayer dollars. Trump has said he would donate the money to charity.
On Friday, lawyers for both sides asked a federal judge in Miami to pause the case for 90 days while they hold talks “designed to resolve this matter and to avoid protracted litigation.” The White House and the Justice Department declined to comment.
The case presents an unusual conflict: Trump is suing his own government, with Justice Department lawyers who ultimately report to the president representing the IRS.
Trump has filed several other large lawsuits since returning to office, including a $15 billion claim against The New York Times and a $10 billion claim against the BBC. A separate $10 billion lawsuit against The Wall Street Journal was dismissed Monday, though a judge allowed Trump to refile.
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