President Trump, his two eldest sons, and the Trump Organization on Monday voluntarily dismissed their $10 billion lawsuit against the IRS and Treasury Department, according to a filing in a Miami federal court. The dismissal was filed "with prejudice," permanently barring them from refiling the case. The move ends a years-long legal battle stemming from the leak of Trump's confidential tax returns.
The case originated after a former IRS contractor leaked Trump's tax records to The New York Times and ProPublica during his first term. The contractor later pleaded guilty and was sentenced to federal prison. The lawsuit was notable for pitting the president against the very agencies he oversees.
Multiple news outlets reported that Trump had been considering launching a nearly $1.8 billion taxpayer-funded compensation fund for those who claim they were wrongfully targeted by the Biden administration, including January 6 defendants. These reports tied the potential fund to ongoing settlement talks. The dismissal now frees Trump from the legal constraints of the lawsuit.
Observers suggest the president may now move forward with the proposed fund, though no official announcement has been made. The fund's size—$1.776 billion—appears symbolic, referencing the year of American independence. Critics question the legality and precedent of using taxpayer money for such compensation.
Legal experts note that the "with prejudice" dismissal means Trump surrenders any future right to sue over the tax-return leak. The case had already drawn scrutiny for its unusual posture, with the president suing his own administration.