Donald Trump settles tax case, unlocks ‘forever immunity’ clause
As part of the settlement agreement aimed at resolving Trump’s $10 billion lawsuit against the Internal Revenue Service over leaked tax returns, the United States is “forever barred and barred” from investigating or prosecuting Trump, his sons and the Trump organization’s current tax investigations, according to a one-page document posted on the Justice Department’s website.
The government was also barred from investigating Trump’s family, affiliates and others, according to the document signed by Deputy Attorney General Todd Blanche. This document is a separate addendum to the original agreement announced Monday and was quietly added to the Justice Department’s website on Tuesday.
The White House referred questions from The Associated Press to the Department of Justice, and the U.S. Treasury did not respond to requests for comment from The Associated Press.
In response to a request for comment on the expanded agreement, the Justice Department said the agreement covers only current inspections, not future inspections.
The move comes after the Trump administration announced Monday that, as part of the lawsuit settlement, a nearly $1.8 billion fund would be created to compensate allies of the Republican president who believe they were unfairly investigated and prosecuted; Democrats and government observers criticized this regulation as “corrupt” and unconstitutional.
The $1.776 billion “Gunfighting Fund” will allow people who believe they are being targeted for politically motivated prosecution, including by the Biden administration Justice Department, to apply for payments, creating what Blanche calls “a legal process through which victims of the law and gunification can be heard and seek compensation.” The 2021 riot at the U.S. Capitol will be taken into account for payments from the new fund.
Democratic lawmakers and ethics watchdogs have criticized the creation of the fund, saying it is corrupt, opaque and has the potential to become a “slush fund” for the president and his allies. Even Republican lawmakers have expressed signs of unease about the creation of the fund, including Senate Majority Leader John Thune, who told reporters he was “not a big fan.”
The fund is dedicated to “paying compensation to people who have been treated horribly,” Trump told reporters at the White House on Monday.
Daniel Werfel, a former IRS Commissioner during the Biden administration, said he was unaware of cases in which the IRS had previously agreed to “permanently waive review of previously filed tax returns for a particular person or business.”
He said the regulation gives Trump and his family separate tax rules from other Americans.
“Whether you’re the president or Joe the Plumber, people expect the same tax rules and enforcement framework to apply to everyone.”
The fund is funded by Trump, his sons Eric Trump and Donald Trump Jr. and was announced after the Trump Organization agreed to drop its lawsuit against the IRS and Treasury Department. The lawsuit alleged, among other allegations, that the leak of confidential tax records caused reputational and financial damage and negatively affected their public reputation.
According to the original settlement agreement posted on the Justice Department website on Monday, Trump will receive a formal apology from the U.S. government but “will not receive any monetary payment or compensation of any kind” from the settlement. However, settling existing potential tax claims can protect against possible unpaid tax liabilities.
The judge presiding over the case, Kathleen Williams, dismissed the case on Monday and in her filing admonished government agencies, especially the Department of Justice, for not being transparent about the deal.
He said neither agency had “provided any settlement documents or provided any documentation to ensure that resolution is appropriate where there is a significant question as to whether a genuine case or dispute exists.”
