Lawyers representing former President Donald Trump have announced that they are currently “in discussions” with the Department of Justice (DOJ) regarding a potential resolution for a $10 billion lawsuit filed against the Internal Revenue Service (IRS) earlier this year. This lawsuit involves Trump, his two sons, and the Trump Organization.
In a court document submitted on Friday, the Trump legal team requested an extension on the deadline to facilitate discussions aimed at resolving the case and avoiding lengthy litigation.
The lawsuit, initiated in January, accuses the IRS and the Treasury Department of improperly disclosing tax information during Trump’s presidency. This legal action follows an incident in which a contractor working for the IRS admitted guilt in 2023 for stealing the tax records of Trump and other affluent individuals, leaking this information to various media outlets between 2019 and 2020.
The plaintiffs, including Trump and his sons Eric and Donald Jr., claim that the defendants have inflicted reputational and financial damage, caused public embarrassment, unjustly harmed their business reputations, misrepresented them publicly, and adversely affected President Trump’s standing. They are seeking $10 billion in damages.
The attorneys stated in their filing that both parties are working collaboratively and require additional time to ensure that their discussions can proceed effectively, thus helping to avoid drawn-out litigation. This request was made with the agreement of the DOJ’s lawyers. The extension will provide both sides the opportunity to structure their discussions in a way that benefits all parties involved, as well as the court.
As of now, the DOJ has not responded to the lawsuit and is facing a looming deadline this month. The filing on Friday confirmed that both parties have consented to a 90-day extension.
Recently, a group of former government officials submitted an amicus brief to the court, expressing concerns regarding the ethical implications of a president suing his own government for a substantial amount. They highlighted the uniqueness of the case, noting that the President has control over both sides of the litigation, which could lead to potential collusive tactics. They warned that treating this situation as routine could undermine the integrity of the justice system and jeopardize taxpayer and privacy protections central to the case.
In their lawsuit, the Trumps argue that the IRS and Treasury Department failed to implement adequate technical measures, employee screening, security protocols, and monitoring to prevent the unauthorized access and theft of tax information.
