White House · Donald Trump · Elon Musk · Democrats · U.S. · Fortune Technology
Trump’s IRS suit may end with a $1.7 billion compensation fund
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◎ Multiple-sources
US officials have discussed creating a $1.7 billion federal fund to pay victims of so-called government weaponization to resolve President Donald Trump’s lawsuit against the Internal Revenue Service.
Key facts
- The Justice Department faced blowback from administration critics for changing its stance in court to reach $1.25 million settlements with Michael Flynn, Trump’s first national security adviser
- US officials have discussed creating a $1.7 billion federal fund to pay victims of so-called government weaponization to resolve President Donald Trump’s lawsuit against the Internal Revenue Service
- The settlement talks have taken place ahead of a key deadline next week in Trump’s $10 billion suit seeking to hold the IRS liable for the 2019 leak of his tax information, according to people
- A former IRS contractor, Charles Littlejohn, pleaded guilty in 2023 to stealing tax records for thousands of wealthy Americans, including Trump, Ken Griffin, Elon Musk and Jeff Bezos, and leaking
Summary
The settlement talks have taken place ahead of a key deadline next week in Trump’s $10 billion suit seeking to hold the IRS liable for the 2019 leak of his tax information, according to people familiar with the discussions. Even if Trump doesn’t get a payout, any funding arrangement is likely to raise questions about whether the president and other US officials are improperly using taxpayer dollars to settle personal and political scores. Already, under Trump, the government has reversed its positions in court cases involving some of his allies and supporters. A former Trump White House lawyer is suing for compensation over alleged privacy violations during a congressional inquiry into the 2020 election.