The Justice Department (DOJ) began internal discussions about potentially settling President Donald Trump’s $10 billion lawsuit against the Internal Revenue Service, which could involve direct taxpayer payments to the president, according to The New York Times.
In January, Trump sued the agency for $10 billion, alleging it failed to prevent former contractor Charles Littlejohn from leaking his tax returns between 2018 and 2020. Littlejohn was sentenced in 2024 to five years in prison.
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The DOJ is reportedly exploring several settlement options, including a direct financial payout using taxpayer funds or a deal where the IRS would agree to drop all current and future audits of the president, his family members and his various business entities.
Judge Kathleen Williams of the Southern District of Florida, who is overseeing the case, ordered the DOJ and Trump’s lawyers to submit briefs by May 20 addressing potential conflicts of interest in this unprecedented scenario.
Legal experts and former officials argue the government should not settle, citing the suit’s late filing and excessive size. A similar case involving billionaire Ken Griffin resulted in no financial damages.
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