President Donald Trump has been at loggerheads with the IRS for years over an audit of whether he and his business empire paid enough taxes.
Department of Justice proposes $1.776 billion in ‘legal fees’ funding to resolve Trump’s IRS lawsuit
The Justice Department has offered a $1.776 billion settlement after President Donald Trump dropped a $10 billion IRS lawsuit.
WASHINGTON – The Justice Department’s agreement with President Donald Trump over leaked tax returns includes assurances that the tax agency will no longer pursue any tax liability claims it may have against Trump, his family or his companies.
The nine-page settlement agreement released by the Justice Department on May 18 establishes a $1.776 billion fund for “victims of illegal activity and weapons use,” but makes no mention of the administration’s efforts to go after Trump, his family, and his companies over a long-standing tax dispute.
On May 19, the Justice Department posted another one-page document on its website containing new details and signed by Acting Attorney General Todd Blanche. It includes a seemingly sweeping release that “permanently enjoins and prohibits” the Internal Revenue Service from “prosecuting or pursuing” any effort to determine whether President Trump and any other party are responsible for unpaid or underpaid taxes, interest, attorneys’ fees, or costs incurred by the government.
Trump sued the IRS for $10 billion in January, alleging that a contractor leaked his tax returns, even though he had promised to release them if he ran for president since 2014.
In 2024, the New York Times reported that an IRS audit could cost President Trump more than $100 million.
Democratic Party fiercely demands benefits at Blanche hearing
When Blanche appeared at a May 19 appropriations hearing, the fund was sharply criticized by Senate Democrats who said the fund was intended to benefit taxpayers to Trump’s political allies.
The committee’s ranking Democrat, Maryland Sen. Chris Van Hollen, told Blanche he believed the fund was “an outrageous and unprecedented slush fund that you set up” to settle Trump’s lawsuits.
Like other Democrats, Van Hollen noted that Branch served as Trump’s personal attorney in several criminal cases.
Blanche insisted the fund is nonpartisan.
“This is not limited to Republicans,” Blanche told members of the Senate Appropriations subcommittee that oversees Justice Department spending. “There are no limits on claims.”
Blanche said “anyone” can apply for benefits, including those convicted of attacking police during the Jan. 6, 2021, Capitol riot.
“Just a simple question, are individuals who assaulted Capitol Police officers eligible for this fund?” Van Hollen asked at one point. “Anyone in this country is eligible to apply if they believe they are a victim of weaponization,” Blanche responded.
“Would there be a rule that if you assault a Capitol Police officer or commit a violent crime, you’re not eligible? Why not make that a rule?” Van Hollen asked Blanche.
“Because I’m not one of the five commissioners making the rules,” Blanche replied.
“You’re appointing four of the five commissioners, aren’t you, Attorney General?” Mr. Van Hollen said.
“I appoint all five members,” replied M. Blanche.
But Mr. Blanche would not commit to providing guidance to his appointees on whether to bar the applications of anyone connected to Jan. 6, including those convicted of violent acts against police officers protecting the Capitol, under repeated questions from Democrats.
“I don’t think it’s the attorney general’s job to encourage commissioners to do something or not do something,” Blanche said.
Afterwards, Blanche said anyone could apply for compensation under the new fund, even President Biden’s son Hunter. He also said that people brought before various grand juries in Trump’s criminal cases, including a Mar-a-Lago gardener and a Secret Service agent, are good candidates for compensation because they endured “use of force.”
