Trump Drops $10B Lawsuit Against the IRS

President had sued in January over the leak of his tax returns

By Polly Davis Doig withNewser.AI

Posted May 18, 2026 9:08 AM CDT

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Trump Drops $10B Lawsuit Against the IRS — President Trump gestures to reporters as he walks across the South Lawn of the White House, Friday, May 15, 2026, in Washington, on return from Beijing. (AP Photo/Jacquelyn Martin)

President Trump has quietly pulled the plug on a multibillion-dollar legal fight with the IRS. A federal filing in Miami on Monday shows the president, his two eldest sons, and the Trump Organization have dropped their $10 billion lawsuit against the agency—and did so "with prejudice," meaning they can't file the same claims again, reports CNBC. The filing doesn't explain why the case was abandoned. Trump's suit, filed in January, stemmed from the theft and leak of his tax returns by ex-IRS contractor Charles "Chaz" Littlejohn in 2019 and 2020; Littlejohn was sentenced to five years in that case, notes the AP.

The move comes amid scrutiny of reported Justice Department talks over a possible $1.7 billion government-funded pot to compensate Trump allies who say they were unfairly targeted by the Biden administration—an idea Democrats have derided as a "slush fund." Lawyers for Trump and the IRS declined to comment.

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