Trump fights back after judge accuses him of trying to ‘manipulate’ his own $10 billion lawsuit
WASHINGTON, DC: President Trump on Friday moved to appeal a federal judge's ruling that questioned the legality of a $10 billion lawsuit he, two of his sons, and the Trump Organization filed against the IRS, a case that has become tied to an unrelated Senate standoff over his attorney general nominee.
The Trumps filed notice that they would appeal the July 13 ruling from US District Judge Kathleen Williams, who found the lawsuit was filed for an "improper purpose." The case had already resulted in a settlement that created a $1.8 billion "anti-weaponization" fund, under which the government agreed not to investigate or pursue tax claims against Trump, his family members, or his companies.
Trump’s IRS lawsuit that led to the appeal
In January, Trump filed a lawsuit against the IRS and the Treasury Department, alleging that the agency was responsible for an unlawful disclosure of his tax returns.
The disclosure led to a 2020 New York Times report, which claimed that Trump had paid only $750 in federal income taxes for the years 2016 and 2017.
In 2023, a former IRS contractor pleaded guilty to illegally obtaining Trump’s tax documents, as well as those of dozens of others, and is serving a five-year prison sentence for the breach.
A spokesperson for Trump's legal team said Friday the IRS "wrongly allowed a rogue, politically-motivated employee" to leak the confidential records, which were then "illegally released to millions of people."
In her ruling, Judge Williams, an Obama appointee, found Trump had sued the IRS in order to "manipulate the judicial process" rather than to "vindicate rights," noting that Trump has authority over the very agencies, the IRS, Treasury and the Justice Department, he was suing.
She also ruled that the Justice Department could not treat its settlement with Trump as a binding judicial agreement, ordered sanctions against acting Attorney General Todd Blanche and Associate Attorney General Stanley Woodward, and asked the Florida Bar to consider disciplinary action against Trump attorney Alejandro Brito.
Trump’s IRS lawsuit affects Todd Blanche’s confirmation fight
The decision has had repercussions that have directly impacted an unrelated Senate fight.
The unprecedented settlement is at the center of a standoff between two Republican senators and the Justice Department that has stalled a vote on Blanche’s nomination for attorney general.
Republican senators John Cornyn of Texas and Thom Tillis of North Carolina have not yet supported Blanche’s nomination as permanent attorney general unless the Justice Department agrees to permanently end the anti-weaponization fund and limit the settlement’s audit-protection provisions.
They have blocked Blanche's confirmation.
Trump acknowledged Friday that the fund is effectively dead, telling reporters, "I wish it weren't," but declined to say whether he would agree to limit the tax settlement's protections for himself, his family, or the Trump Organization.
With the appeal now filed, the underlying legal dispute and its impact on Blanche’s path to confirmation remain unresolved heading into the fall.
