Trump drops $10 billion lawsuit against IRS [View all]
Source: CNBC
Published Mon, May 18 2026 9:13 AM EDT Updated 24 Min Ago
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 Miami federal court filing. The filing by Trump’s lawyers did not say what led to the surprising move, but it suggested it effectively barred a judge from analyzing whether the president’s civil suit was legally valid and from dismissing it if she finds it is invalid.
The dismissal came on the heels of controversy over reports that the Department of Justice was negotiating a settlement with the president that could see the federal government pay $1.7 billion toward a fund to compensate allies of Trump who allege wrongful treatment by the Biden administration. Democratic members of Congress said that would be a “slush fund.”
CNBC has asked the DOJ if Trump’s dismissal of the suit is being made in conjunction with a settlement by the government of his claims outside of court. The court filing on Monday said Donald Trump, Donald Trump Jr., Eric Trump, and The Trump Organization were voluntarily dismissing the lawsuit against the IRS “with prejudice.”
“With prejudice” means the plaintiffs can not renew the same claims in another civil complaint. The notice of dismissal came two days before a deadline set by U.S. District Court Judge Kathleen Williams for the DOJ and Trump’s attorneys to answer whether a “case and controversy exists in this matter so as to establish the Court’s jurisdiction.”
Read more: https://www.cnbc.com/2026/05/18/trump-dismiss-irs-lawsuit.html
Link to FILING (PDF) - https://storage.courtlistener.com/recap/gov.uscourts.flsd.706172/gov.uscourts.flsd.706172.52.0_5.pdf
Previous article -
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 Miami federal court filing. The filing by Trump's lawyers did not say what led to the surprising move.
It came on the heels of controversy over reports that the Department of Justice was negotiating a settlement with the president that could see the federal government pay $1.7 billion toward a fund to compensate allies of Trump who allege wrongful treatment by the Biden administration. Democratic members of Congress said that would be a "slush fund."
CNBC has asked the DOJ if Trump's dismissal of the suit is being made in conjunction with a settlement by the government of his claims outside of court. The court filing on Monday said Donald Trump, Donald Trump Jr., Eric Trump, and The Trump were voluntarily dismissing the lawsuit against the IRS "with prejudice." With prejudice means the plaintiffs can not renew the same claims in another civil complaint.
Trump sued the IRS in late January over the leak of his tax information by an IRS employee Charles "Chaz" Littlejohn in 2019 and 2020. A spokesman for Trump's attorneys had no immediate comment on the dismissal.The IRS did not immediately respond to a request for comment.
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Article updated.
Original article -
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 court filing in Miami federal court.
The surprising move came on the heels of controversy over reports that the Department of Justice was negotiating a settlement with Trump that would see the federal government pay $1.7 billion toward a fund that could be used to compensate allies of Trump who allege wrongful treatment by the Biden administration.
The court filing on Monday said Donald Trump, Donald Trump Jr., Eric Trump, and The Trump were voluntarily dismissing the lawsuit against the IRS "with prejudice."
With prejudice means the plaintiffs can not renew the same claims in another civil complaint.
This is breaking news. Please refresh for updates.
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