The U.S. government will permanently drop tax claims against President Donald Trump under an expanded settlement document made public Tuesday, according to the Justice Department addendum that broadens the scope of a deal tied to Trump’s $10 billion lawsuit over leaks of his tax returns.
The one-page document, posted to the Justice Department’s website, says the government is “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump organization’s current tax examinations, according to the description of the addendum in the Associated Press report. The addendum, signed by acting Attorney General Todd Blanche, is described by the Justice Department as a separate addition from the settlement announced Monday.
As part of the broader resolution, the White House referred questions from the Associated Press to the Justice Department, and the U.S. Treasury did not respond to requests for comment. In response to questions about the expanded settlement, the Justice Department said the agreement refers only to existing audits and does not cover future examinations.
The addendum also says the government is barred from looking into Trump’s family, affiliates and others, under terms Blanche signed, the report said. The Justice Department did not respond to Treasury officials to comment requests, and the White House declined to provide details beyond referral.
The settlement terms were presented as part of the effort to resolve Trump’s suit against the IRS and the Treasury Department. The lawsuit alleged that a leak of confidential tax records caused reputational and financial harm and harmed Trump’s public standing, among other claims, the report said.
The settlement announcement on Monday included the creation of the nearly $1.8 billion “Anti-Weaponization Fund,” described as a new compensation mechanism for allies of Trump who believe they were unjustly investigated and prosecuted. Democrats and government watchdogs criticized the program, calling it “corrupt” and unconstitutional, while even some Republicans expressed discomfort, including Senate Majority Leader John Thune, who told reporters he was “not a big fan.”
Trump said Monday that the fund is dedicated to reimbursing people who were “horribly treated,” according to the Associated Press report. The report also said Blanche, after being questioned by lawmakers on Capitol Hill Tuesday, did not rule out the possibility that people who carried out violence during the Jan. 6, 2021, riot at the U.S. Capitol could be considered for payouts from the fund.
The settlement discussion also included concerns from people with experience overseeing IRS operations. Daniel Werfel, a former IRS commissioner during the Biden administration, told reporters he was unaware of instances where the IRS agreed in advance “to permanently forgo examination of previously filed tax returns for a specific person or business,” the report said, and he argued that the arrangement could create separate tax rules for Trump and his family.
A federal judge overseeing the case also weighed in on the original Monday settlement. The report said the judge, Kathleen Williams, dismissed the case on Monday and admonished government agencies, including the Justice Department, for failing to be transparent about settlement documents. Williams’ filing, as described in the report, said no agency “submitted any settlement documents nor filed any documents ensuring that settlement was appropriate where there was an outstanding question as to whether an actual case or controversy existed.”
While the original settlement agreement described by the report said Trump would receive a formal apology but “will not receive any monetary payment or damages of any kind,” the discharge of current potential tax claims is described as potentially shielding Trump from outstanding liabilities. The expanded addendum released Tuesday, and the Justice Department’s statement about its limits to existing audits, are now the primary focus of scrutiny as the settlement moves beyond the initial terms.