Judge appears skeptical of Trump’s $10 billion lawsuit against IRS and Treasury
On Friday, a federal judge raised doubts about the legal grounds of Trump’s $10 billion lawsuit against the IRS and Treasury Department, ordering a hearing to assess whether the president can sue federal agencies he controls. Florida District Judge Kathleen M. Williams highlighted the ambiguity surrounding the “sufficiently adverse” relationship between Trump and the agencies, requiring both parties to submit additional evidence on their interactions.
“Although President Trump avers that he is bringing this lawsuit in his personal capacity, he is the sitting president and his named adversaries are entities whose decisions are subject to his direction,” Williams, an Obama appointee, said in the order.
The judge also pointed to Trump’s efforts to centralize presidential authority, citing an executive order that restricts executive branch employees from endorsing legal interpretations conflicting with the president’s views on law. “One such employee, the Attorney General, has a statutory duty to defend the IRS in court, yet is bound by executive mandates to align with the President’s legal opinion,” Williams noted. This creates uncertainty about whether the parties are genuinely opposing each other.
Meanwhile, Trump’s legal team is negotiating with the IRS and Treasury to resolve the case, seeking a 90-day extension for discussions. If a settlement emerges, it would involve Trump’s own administration covering the financial compensation for the president and his family.
“It’s very interesting to be on both sides of a lawsuit,” Trump remarked during a January trip on Air Force One, acknowledging the “unique dynamic” of the litigation. He suggested donating any winnings to charities, claiming, “nobody would care because it’s going to go to numerous very good charities.”
The lawsuit, filed in January by Trump and his sons, alleges the government failed to secure confidential tax information, which was leaked by Charles Littlejohn, a former IRS contractor. Littlejohn, employed by Booz Allen Hamilton, was convicted in 2024 for illegally disclosing thousands of tax returns, including Trump’s, to media outlets. The case claims the IRS is accountable for Littlejohn’s actions due to his access to sensitive data and the agency’s known security vulnerabilities.
Trump’s recent legal maneuvers coincide with the Department of Justice settling two prominent cases involving former advisors. This week, the DOJ resolved a lawsuit by Carter Page, who contested surveillance practices linked to his Russian contacts in 2016. Earlier, a $1 million agreement was reached with Michael Flynn regarding his wrongful prosecution.
