IRS agrees Trump family now exists in separate tax dimension

US President Donald Trump’s $10 billion lawsuit against the Internal Revenue Service (IRS) and the Treasury Department over the leak of his tax returns has ended in a controversial settlement agreement that drew bipartisan criticism in Washington, AzerNEWS reports.

The lawsuit, filed earlier this year by Trump, his sons and the Trump Organization, stemmed from the 2019 and 2020 disclosure of confidential tax records. As part of the settlement, the US government agreed to halt tax-related claims connected to Trump, his family members and affiliated businesses for tax returns filed before May 2026. The agreement also bars the IRS from conducting further audits related to those filings.

The settlement initially included the creation of a controversial $1.776 billion “Anti-Weaponization Fund,” intended to compensate individuals claiming they had been politically targeted by the government. Critics warned the mechanism lacked oversight and could potentially benefit Trump allies and participants connected to the January 6 Capitol riot.

Following backlash from lawmakers, legal experts and some Republicans, the Trump administration later abandoned the compensation fund proposal. Acting Attorney General Todd Blanche confirmed that the fund would not move forward, although the tax-related protections granted under the settlement remain in place.

The agreement has triggered criticism from ethics experts and opposition lawmakers, who argue that permanently shielding a sitting president and his businesses from certain IRS actions creates an unprecedented legal precedent.

The case also renewed scrutiny over Trump’s broader financial activities and business interests. Recent reports by financial media outlets highlighted extensive stock trading activity linked to Trump-controlled trusts and raised concerns about possible conflicts of interest involving sectors heavily affected by federal policy decisions.