Trump drops $10 billion lawsuit against IRS
U.S. President Donald Trump (R) and his son Eric Trump (L) leave the White House in Washington, D.C., en route to Charlottesville, Virginia, on April 10, 2026.
Celal Güneş | Anatolia | Getty Images
President Donald Trump, his two eldest sons and the Trump Organization dropped their $10 billion lawsuit against the Internal Revenue Service on Monday, according to a brief filed in Miami federal court.
The surprising move comes on the heels of controversy over reports that the Justice Department was negotiating a deal with Trump in which the federal government would pay $1.7 billion into a fund that could be used to compensate Trump allies who claim unfair treatment by the Biden administration.
Donald Trump, Donald Trump Jr., Eric Trump and The Trump voluntarily dismissed the lawsuit against the IRS “with prejudice,” the court filing said Monday.
Prejudice means plaintiffs cannot renew the same claims in another civil lawsuit.
Trump sued the IRS in late January over tax information being leaked by an IRS employee, Charles “Chaz” Littlejohn, in 2019 and 2020.
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