The text of the settlement was published on Tuesday on the Department of Justice website. The document signed by Acting Attorney General Todd Blanche says the U.S. government is “permanently precluded and disenfranchised” from examining or prosecuting Trump's tax returns filed before the settlement date and any matters that “have been or may be undertaken.” The provision also covers related persons: family members, trust funds and subsidiaries of the US president.
According to the New York Times, audit protection can be very profitable for the president. In 2024, the newspaper wrote that losing the then-current IRS audit could have cost Trump more than $100 million. It is not known whether this case has been concluded or whether Trump or related entities are subject to other audits. IRS procedures provide for a mandatory annual audit of the sitting president's tax returns, but the settlement de facto blocks this mechanism.
Donald Trump sued the tax office. It was about a data leak
The author of the leak, an IRS employee Charles Littlejohn was sentenced in 2024 to 5 years in prison. Despite this, Trump demanded $10 billion for it. compensation. Ultimately, he withdrew the lawsuit and reached a settlement. As part of it, a compensation fund was created for people who were unfairly prosecuted and treated by the justice system under Joe Biden.
“Pure fraud and robbery”
The settlement and fund issue caused great outrage among Democrats. Congressman Jamie Raskin called it a “pure fraud and robbery” of taxpayers' money. Senator Ron Wyden said the tax protection provision violates federal law that prohibits interference by executive branch officials in IRS audits. 93 Democratic congressmen filed a court challenge to block the settlement, arguing that it constituted an unprecedented case of corruption.
Judge Kathleen Williams of the federal court in Miami, who questioned the merits of Trump's lawsuit on the grounds of a conflict of interest – the president was suing an agency he supervises – did not have time to rule on the case because withdrawing the suit before a resolution deprived her of jurisdiction.
Answering journalists' questions on this matter, Vice President JD Vance assured that the president would not receive a cent from the fund, although a day earlier Trump himself had not ruled out such a possibility.
