President Trump and the Justice Department have agreed to settle a lawsuit involving the Internal Revenue Service (IRS) and the Treasury Department. The lawsuit, initiated by Mr. Trump in Miami federal court, accused these agencies of improperly handling his tax returns, leading to their unauthorized disclosure.
The lawsuit claimed that a government contractor leaked tax returns belonging to Mr. Trump, his sons Eric and Donald Trump Jr., and the Trump Organization. The leak reportedly resulted in the information being shared with media outlets in 2020.
A spokesperson for the Justice Department and Mr. Trump’s legal team did not disclose the settlement terms. However, sources suggested that the lawsuit might be dropped in return for the establishment of a fund exceeding $1.7 billion. This fund would compensate allies of Mr. Trump who assert they were unfairly targeted by the current administration.
Mr. Trump’s legal team released a statement accusing the IRS of allowing an employee to leak confidential information to left-wing media, including the New York Times and ProPublica. The information allegedly reached millions of people.
In April, a court filing showed both parties requesting more time to negotiate and potentially resolve the matter without prolonged litigation.