Trump Lawyers Reject Fraud Claims in IRS Settlement Fight

President Donald Trump sued the IRS over alleged damages stemming from the illegal leaking of his tax returns, ultimately reaching a settlement involving $1.8 billion in taxpayer funds and legal protections from certain liabilities, Jacob Sullum wrote for Reason.

Trump’s attorneys argued that suggestions the lawsuit was used as a pretext to secure benefits for Trump, his relatives, or supporters amount to “nothing but speculation.”(Photo: David Boeke Flickr)

“I’m supposed to work out a settlement with myself,” Trump told reporters a few days after filing the lawsuit.

His Jan. 29 lawsuit, which alleged damages from an IRS contractor’s unlawful disclosure of his tax returns, effectively pitted Trump against an agency under his administration, represented by Justice Department lawyers who also answer to him.

The settlement, announced on May 18 by Acting Attorney General Todd Blanche, included $1.8 billion in taxpayer money for purported victims of what Trump described as the Biden administration’s “lawfare and weaponization.”

It also reportedly included legal protections against liability for tax violations and other possible federal offenses involving Trump or his family.

“There is no evidence” of “collusion or fraud” in Trump v. IRS, Alejandro Brito and two other lawyers told US District Judge Kathleen Williams, who last month ordered briefing on the issue.

Trump’s attorneys argued that suggestions the lawsuit was used as a pretext to secure benefits for Trump, his relatives, or supporters amount to “nothing but speculation.”

The article further argues that the case raised potential conflicts of interest because lawyers representing both sides ultimately worked for the executive branch under Trump.