Judge rules Trump's IRS lawsuit settlement was improper and fraudulent
Consensus Summary
A federal judge, Kathleen Williams, issued a scathing ruling declaring Donald Trump’s lawsuit against the IRS was an attempt to manipulate the judicial system to secure immunity from tax audits and a $US1.776 billion fund for alleged victims of government weaponization. Both ABC and the Guardian agree the settlement was fraudulent, with the judge finding no genuine legal dispute since Trump controlled the Treasury Department. The judge barred Trump’s lawyers from future legal actions in Florida and referred them to disciplinary proceedings. The lawsuit, filed on January 29, 2020, was dropped on May 18 after backlash, and the judge’s ruling came after reopening the case due to allegations of collusion. The Guardian notes the settlement initially included a $1.8bn fund, while ABC specifies the full $US1.776 billion figure. Acting Attorney General Todd Blanche faces Senate confirmation hearings on Wednesday, with critics urging Congress to nullify the settlement entirely.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Judge Kathleen Williams ruled Donald Trump's lawsuit against the IRS was filed for an 'improper purpose' to 'manipulate the judicial process'
- The settlement included a $US1.776 billion ($2.56 billion) fund for alleged victims of 'weaponization' and immunity from tax audits for Trump
- The settlement was privately settled out of court, with the DOJ setting up a taxpayer-funded pool for payments to those claiming 'weaponization'
- Judge Williams referred Trump’s lawyer Alejandro Brito for possible disciplinary action before the Florida bar
- Judge Williams barred Trump’s lawyer Daniel Epstein from filing lawsuits in the Southern District of Florida for up to a year
- The judge referred Acting Attorney General Todd Blanche and Associate Attorney General Stanley Woodward to state bars for ethics complaints
- The lawsuit was filed on January 29, 2020, a year after Trump's return to the Oval Office
- The lawsuit was dropped on May 18, and Judge Williams ordered Trump’s lawyers to respond to allegations by June 12
- The judge’s ruling was issued in a 56-page document
- Todd Blanche is scheduled to appear before the Senate Judiciary Committee on Wednesday, local time, for confirmation hearings
Points of Difference
Details reported by only one source:
- The settlement included immunity from future tax audits for Trump, which was highly controversial
- The Anti-Weaponization Fund was scrapped a fortnight after its announcement due to widespread backlash
- Trump sued the IRS alleging it should have done more to prevent the contractor from accessing his tax returns
- The lawsuit was the first time a sitting US president sued his own administration
- Trump became the only president not to release his tax records voluntarily since Richard Nixon
- A contractor leaked more than two decades of Trump’s tax information to the press in 2020
- Acting Attorney General Todd Blanche revealed in early June that the fund was no longer moving forward
- Trump sacked his predecessor, Pam Bondi, in April, leading to Blanche’s appointment as acting attorney general
- The Senate Judiciary Committee will vote on Blanche’s nomination, with hearings scheduled for Wednesday and Thursday
- The settlement included a $10bn lawsuit by Trump and his sons, later reduced to a $1.8bn slush fund
- The government never responded to the lawsuit before announcing the settlement
- The judge ruled the lawsuit had no genuine controversy since Trump controlled the Treasury Department
- The judge blocked Trump, his sons, and businesses from using the settlement in any legal proceeding
- The judge ordered the parties to pay legal fees of retired judges and third-party interveners
- Critics urge Congress to act to nullify the entire settlement and prevent future presidential self-dealing
Contradictions
Conflicting information between sources:
- ABC states the settlement fund was $US1.776 billion ($2.56 billion), while the Guardian states the lawsuit was initially for $10bn and the settlement included a $1.8bn fund
- ABC mentions the lawsuit was filed in 2020, but the Guardian does not specify the year of the lawsuit filing
- ABC states the lawsuit was dropped on May 18, while the Guardian does not provide a specific date for the withdrawal of the lawsuit
Source Articles
Trump's IRS settlement tried to 'manipulate' court, judge says
US President Donald Trump's lawsuit against his own government over leaked tax records was an unparalleled exercise in self-dealing, a US judge says in a scathing ruling.
US judge nullifies Trump deal to resolve IRS lawsuit in scathing ruling
Kathleen Williams sanctions president’s lawyers and says $10bn suit against IRS was brought for ‘improper purpose’ A federal judge on Monday nullified an agreement the government reached with Donald Trump and his sons over the leak of his tax returns. The judge lambasted the government and president’s lawyers for using the judicial process to try to concoct a beneficial arrangement for the president. The ruling from US district judge Kathleen Williams in the southern district of Florida blocks a