The U.S. Justice Department has issued an order permanently preventing the Internal Revenue Service (IRS) from pursuing audits related to President Donald Trump’s past tax returns, as well as those of his relatives and business entities. The one-page directive, signed by acting Attorney General Todd Blanche and released on Tuesday, states that the government may not audit tax returns filed before May 19, 2026, or revisit any matters that “were raised or could have been raised” previously.
The order significantly expands a settlement agreement reached between Trump and the IRS a day earlier. Under the agreement, Trump agreed to withdraw his $10 billion lawsuit against the agency, which stemmed from the unauthorized disclosure of his tax returns. The settlement also includes the establishment of a nearly $1.8 billion federal compensation fund intended to support individuals who claim to have been affected by politically motivated government actions.
The decision has sparked renewed scrutiny in Washington, with Blanche facing repeated questions about the compensation fund during his first congressional testimony since assuming the role of acting attorney general. The development marks a major legal and political milestone in the long-running disputes surrounding Trump’s tax records and allegations of government “weaponization.”
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