Trump settles $10 billion lawsuit over alleged tax records leak involving IRS and Treasury Department
WASHINGTON (Kuwait News Desk) — U.S. President Donald Trump has reached a settlement in a $10 billion lawsuit filed over the alleged illegal leak of his tax returns by the U.S. Treasury Department and the Internal Revenue Service (IRS).
According to court documents submitted to a federal court, both parties agreed to resolve the case through mutual consent, bringing an end to the high-profile legal dispute that was originally filed in Florida in January 2026.
Trump, along with his sons Donald Trump Jr. and Eric Trump, and the Trump Organization, had accused the IRS and the Treasury Department of failing to protect confidential tax records. The lawsuit claimed that this negligence allowed a government contractor to unlawfully leak sensitive financial data to the media.
While full settlement details have not been publicly disclosed, reports from U.S. media outlets suggest that the agreement includes the creation of a special compensation fund exceeding $1.7 billion. The fund is reportedly intended to compensate individuals who claim they were unfairly targeted during the Biden administration.
Trump’s legal team stated that a politically motivated IRS employee improperly accessed and leaked private tax information belonging to Trump and his family, which was later published by major media organizations, including The New York Times and ProPublica.
The tax records controversy has been a long-running political issue in the United States. Trump became the first modern U.S. president to refuse full public release of his tax returns during the 2016 election campaign, despite repeated demands from critics.
In 2020, portions of his tax information were leaked to the press, revealing claims that he had paid little or no federal income tax in several years. This sparked widespread debate over transparency and conflicts of interest between business holdings and public office.
The latest settlement comes at a time when Trump remains a central figure in American politics, with ongoing legal and political battles continuing to shape his public and electoral influence.
