Trump Drops $10 Billion Lawsuit Against IRS Over Tax Return Leaks

U.S. President Donald Trump has voluntarily dismissed his $10 billion lawsuit against the Internal Revenue Service (IRS), according to a court filing submitted on Monday. The terms behind the dismissal were not immediately disclosed, and it remains unclear whether a settlement was reached between the parties involved. The White House has not yet issued an official response regarding the matter.

The lawsuit, filed earlier this year by Trump, his sons Donald Trump Jr. and Eric Trump, along with the Trump Organization, accused the IRS of failing to prevent the unlawful disclosure of their confidential tax records. The case stemmed from actions by former IRS contractor Charles Littlejohn, who leaked Trump’s tax returns to media organizations including The New York Times and ProPublica in 2019 and 2020. Reports based on those documents alleged that Trump had paid little or no federal income taxes in several years.

Littlejohn was later charged in 2023 for improperly disclosing the tax information of Trump and thousands of wealthy Americans. Prosecutors argued that the leaks were politically motivated, and he eventually pleaded guilty before receiving a five-year prison sentence. The lawsuit also raised constitutional and legal questions about whether a sitting president could sue agencies within his own administration, with U.S. District Judge Kathleen Williams previously questioning whether the case represented a genuine legal dispute.

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