The U.S. government has permanently withdrawn its tax claims against President Donald Trump, his children, and the Trump Organization, according to a settlement document released May 20. The agreement, signed by acting Attorney General Todd Blanche, resolves a $10 billion lawsuit Trump filed against the Internal Revenue Service over the leak of his tax returns. The document states that the United States is “forever barred and estopped” from examining or processing the current tax audits of Trump, his children, and the Trump Organization. The government is also prohibited from investigating Trump’s family, associates, and other individuals.
The terms were disclosed in a separate annex to the original settlement, which was announced Monday. The annex was added discreetly to the Department of Justice website on Tuesday. MSI previously reported that the Trump administration had agreed to drop the lawsuit; the full scope of the government’s concessions became public with the release of the annex.
The Associated Press reported that the settlement represents an extraordinary use of executive power, shielding the president from further scrutiny of his finances and legal conduct. The agreement extends beyond Trump himself to cover his children — Donald Trump Jr., Eric Trump, and Ivanka Trump — as well as the Trump Organization and other named individuals.
The original lawsuit, filed in 2022, alleged that the IRS leaked Trump’s tax returns to the media. Trump sought $10 billion in damages. The settlement’s terms permanently halt all ongoing IRS audits of Trump and his family’s tax filings, which had been the subject of long-running legal battles and congressional investigations. The agreement does not involve any payment to Trump from the government, but it effectively ends the IRS’s ability to pursue any further tax claims against the president or his business entities.
Legal experts cited in the AP report said the scope of the settlement is unprecedented, noting that the government has essentially granted a permanent exemption from tax enforcement to a sitting president and his family. Critics argued that the deal undermines the principle of equal application of tax laws. The White House did not respond to requests for comment.