Lawyers for President Trump told a federal court on Friday that they're talking with the Justice Department about a deal to end his $10 billion lawsuit against the Internal Revenue Service and the Treasury Department. In the filing, attorneys for Trump, his sons Eric Trump and Donald Trump Jr., and the Trump Organization asked for a 90-day extension of a government deadline on Monday so the sides can pursue negotiations and "avoid protracted litigation." Lawyers for Trump's Justice Department, which has not formally responded to the lawsuit, consented to the delay, the filing said. The settlement talks are drawing outside scrutiny, ABC News reports.
The suit stems from the theft by an IRS contractor and release of Trump's confidential tax information during his first term. Lawyers at the White House and in the Justice Department are unsure how to handle the case, per the New York Times. The concerns include the awkwardness of having government lawyers oppose the president. Administration officials have considered trying to seek a postponement until Trump is out of office or detailing the conflict inherent in the Justice Department defense of the case to a judge. But they figure Trump would have to OK any such decision.
A group of former government officials filed a brief last month warning that a sitting president suing federal agencies he oversees is "extraordinary" and could invite "collusive litigation tactics," per ABC. Because Trump effectively controls both sides of the case, they argued, treating it as routine could undermine confidence in the justice system and weaken taxpayer privacy protections at issue in the dispute. And congressional Democrats have drawn up legislation that would prohibit the president, vice president, and their families from receiving payments from the government in lawsuit settlements, per NBC News.
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