Trump admits IRS planning to settle his $10 billion lawsuit without trial
President Donald Trump and his family say they are in talks with the Internal Revenue Service, which he oversees, to settle a $10 billion lawsuit without going to trial.
After taking office in 2025, Trump filed a lawsuit claiming that an IRS contractor had leaked his tax information. Most modern presidents have released their tax returns to the public, but Trump repeatedly declined to do so.
In a motion filed with the IRS's consent on Friday, Trump revealed that he and his sons were negotiating with the agency to resolve the $10 billion suit.
"The case remains in its early stages," the motion stated. "Good cause exists to grant an extension in this matter while the Parties engage in discussions designed to resolve this matter and to avoid protracted litigation. This limited pause will neither prejudice the Parties nor delay ultimate resolution. Rather, the extension will promote judicial economy and allow the Parties to explore avenues that could narrow or resolve the issues efficiently."
"The Parties are engaging in discussions and need time to work through how to ensure those discussions can take place productively to avoid protracted litigation. This brief period will allow the Parties to initiate and structure those discussions in a manner that best serves the interests of all Parties and the Court," the document added.
Democrats have accused Trump of trying to "steal" money from the Treasury.
"While the Internal Revenue Code permits a taxpayer to seek redress for unauthorized disclosures, Congress designed this provision to provide compensation for proven harm — not to confer $10 billion dollar windfalls to a President seeking to line his own pockets at taxpayer expense," Sens. Ron Wyden (D-OR) and Elizabeth Warren (D-MA) said in February.
For his part, Trump has admitted he is negotiating with himself rather than fighting the lawsuit.
"I'm supposed to work out a settlement with myself," the president said in January. "We could make it a substantial amount, nobody would care, because it's gonna go to numerous, very good charities."