US3 min(s) read
Published 13:09 21 May 2026 GMT
Donald Trump and his family are no longer at risk of being audited, following news of a settlement being reached with the Justice Department.
Back in January, the President and his two eldest sons sought to sue the IRS (Internal Revenue Service) for $10 billion, over leaks about their business and personal tax returns.
By filing the lawsuit, Trump set a precedent as the first-ever president to sue the US government.
The Department of Justice confirmed this week that a settlement was reached, meaning that the IRS is blocked from reviewing tax filings that Trump, his family, and his businesses made in the past.
The government had then agreed to create a $1.776 billion fund, which would provide "a systematic process to hear and redress claims of others who suffered weaponization and lawfare" under former President Joe Biden.
This move would mean that many could benefit, including those who stormed the Capitol on January 6, 2021, as experts described the 79-year-old as the "most corrupt president in American history."
Several accusations have been made against Trump's finances and tax payments since he announced himself as a presidential candidate in 2015.
While these questions refuse to go away, the case has been settled.
Trump has made his fortune and built his success through several profitable business ventures, many of which were managed by his sons and family while he was in office.
You may have heard of the long-awaited Trump T1 phone, which is gold-plated, as well as the cryptocurrency protocol, World Liberty Financial.
Accusations of tax-related crimes were brought against the President's real estate business, the Trump Organization, as they were fined $1.6 million back in 2023.
They were found guilty of fraud by a jury, while Trump was found liable for business fraud last year via the inflation of property values.
Tax return leaks resulted in a $10 billion lawsuit from the Trumps, as The National reported that the resulting $1.776 billion fund and the settlement marked a win-win situation for the family.
They will never be prosecuted for any potential tax-related crimes that may come from these returns in particular.
But the new fund is in relation to those who think they were targeted specifically by the Biden administration's Justice Department.
Acting Attorney General Todd Blanche said: “The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again.”
“As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress.”
Principal Associate Deputy Attorney General Trent McCotter added: “The use of government power to target individuals or entities for improper and unlawful political, personal, or ideological reasons should not be tolerated by any Administration."
One spokesperson for the IRS told the Financial Times that the immunity given to the Trumps is "only in respect to any existing audits."
They clarified that "there would be little point in settling several significant claims if either party could simply turn around and seek to initiate more adverse claims that could have been pursued previously."
