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Trump Sues IRS and Treasury for $10 Billion Over Tax Leak

The unprecedented suit pits the president against agencies he oversees, prompting conflict-of-interest concerns about how the Justice Department will defend the case.

Overview

  • Filed Jan. 29 in Miami federal court, the complaint was brought by President Trump in his personal capacity alongside Donald Trump Jr., Eric Trump, and the Trump Organization.
  • Plaintiffs cite reputational and financial harm from disclosures between 2018 and 2020, pointing to federal privacy protections under tax law that penalize unauthorized release of return information.
  • Treasury days earlier canceled contracts with Booz Allen Hamilton, the contractor’s employer, saying the firm failed to safeguard sensitive IRS data after Charles Littlejohn’s leaks.
  • Littlejohn, who provided Trump’s and other wealthy taxpayers’ records to The New York Times and ProPublica, pleaded guilty and received a five-year prison sentence in 2024.
  • Trump told reporters he might direct any payout to charity, and Deputy Attorney General Todd Blanche said the department is assessing how to handle the conflict raised by defending the government against the president’s claim, as legal analysts question the $10 billion demand and foresee similar suits by other affected taxpayers.