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surfered

(14,214 posts)
Wed May 13, 2026, 08:47 AM Wednesday

Trump's DOJ lawyers negotiating with Trump's personal lawyers over his $10 billion lawsuit with the IRS

9 hrs ago
Li Zhou
Huffington Post

DOJ Discussing Possible Settlement In Trump’s Suit Against IRS: NYT

The Justice Department is discussing whether to settle a lawsuit that President Donald Trump filed against the Internal Revenue Service, The New York Times reports, citing three anonymous sources familiar with the deliberations.

In January, Trump sued the agency for $10 billion over its alleged failure to prevent a leak of his tax records during his first term.

Were the settlement to include monetary compensation, it would mean that Trump's administration — and taxpayers — would effectively be doling out the payment, drawing accusations of a shakedown.

The DOJ and White House are also considering the potential of the IRS ditching audits of Trump, his family members and his businesses as part of a settlement, two of the sources told The Times.

In April, a federal judge raised questions about the legal basis of Trump’s lawsuit, and asked if the two parties were actually in conflict with one another.

The Justice Department declined to comment for The Times’s story. A spokesperson for Trump’s attorneys in the case claimed to the publication that Trump “continues to hold those who wrong America and Americans accountable.”

https://www.huffpost.com/entry/latest-news-live-updates_n_6a01a0f2e4b06e786e3f4160

Read more from The New York Times:

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riversedge

(81,505 posts)
2. So, either way--Trump wins/extorts-steals $$10 BILLION from taxpayers!!-in just a matter of TIME!!
Wed May 13, 2026, 08:59 AM
Wednesday


Trump's DOJ lawyers negotiating with Trump's personal lawyers over his $10 billion lawsuit with the IRS

Johonny

(26,573 posts)
3. Nothing worth reporting there
Wed May 13, 2026, 09:02 AM
Wednesday

Just the honest actions of honest people...

And holy fuck is America a corrupt pipe of shit under Trump

riversedge

(81,505 posts)
4. So, in Trumps 'mind'-it is the US taxpayer who is accountable and pays Trump $$10 BILLION!!
Wed May 13, 2026, 09:04 AM
Wednesday

Is that what Trump is saying/?


............The Justice Department declined to comment for The Times’s story. A spokesperson for Trump’s attorneys in the case claimed to the publication that Trump “continues to hold those who wrong America and Americans accountable.”

Johnny2X2X

(24,428 posts)
7. I think people just assume we're the richest country in existence
Wed May 13, 2026, 10:05 AM
Wednesday

And that there will always be more. They underestimate how much this group is stealing. I think they can steal $Trillions.

Johnny2X2X

(24,428 posts)
6. The settlement will be sealed
Wed May 13, 2026, 10:05 AM
Wednesday

Watch. And the most surprising thing is it's only $10B, he could have asked for $500B and Republicans wouldn't blink.

LetMyPeopleVote

(181,878 posts)
8. MaddowBlog-Judge questions whether Trump can sue his own administration for $10 billion
Wed May 13, 2026, 11:03 AM
Wednesday

If the president was waiting for a payout from his IRS lawsuit, a federal judge suggested he might need to start lowering his expectations.

Judge questions whether Trump can sue his own administration for billion

www.ms.now/rachel-maddo...

Mike Walker (@newnarrative.bsky.social) 2026-04-27T19:11:24.754Z

https://www.ms.now/rachel-maddow-show/maddowblog/judge-questions-whether-trump-can-sue-his-own-administration-for-10-billion

In response to highly dubious civil lawsuits, the Trump Justice Department has been exceedingly generous lately, agreeing to lucrative settlements with plaintiffs who are politically aligned with the White House. Whether Donald Trump will be among the beneficiaries, however, remains an open question.

A federal judge suggested late last week that the president might have to lower his expectations. Politico reported:

President Donald Trump’s $10 billion lawsuit against the IRS over the leaking of his tax returns ran into turbulence Friday as a judge ordered a hearing on whether the Constitution allows the president to sue the federal government he oversees.

U.S. District Court Judge Kathleen Williams has asked Trump’s private attorneys and Justice Department lawyers representing the IRS to address whether his control over the government’s actions in the case means it’s the kind of dispute federal courts cannot consider
.


“Although President Trump avers that he is bringing this lawsuit in his personal capacity, he is the sitting president and his named adversaries are entities whose decisions are subject to his direction,” Williams wrote in a four-page order.

“It is unclear to this Court whether the Parties are sufficiently adverse to each other so as to satisfy Article III’s case or controversy requirement,” the judge added, referring to the Constitution.....

Shortly after his lawyers filed the case, the president told reporters that he assumed “nobody would care” if he received a lucrative payout as part of the frivolous litigation. That payout now appears in doubt. Watch this space.

We spent maybe part of one Constitutional law class on the case or controversy provision of the Constitution. This usually came up in the cases dealing with advisory opinions. Here is the relevant part of the UN Constitution

Article III, Section 2, Clause 1:

The judicial Power shall extend to all Cases, in Law and Equity, arising under this Constitution, the Laws of the United States, and Treaties made, or which shall be made, under their Authority;—to all Cases affecting Ambassadors, other public Ministers and Consuls;—to all Cases of admiralty and maritime Jurisdiction; to Controversies to which the United States shall be a Party;—to Controversies between two or more States; between a State and Citizens of another State, between Citizens of different States,—between Citizens of the same State claiming Lands under Grants of different States, and between a State, or the Citizens thereof, and foreign States, Citizens or Subjects.

Since trump is on both sides of this silly lawsuit, there is no Case or Controversy.

LetMyPeopleVote

(181,878 posts)
10. MaddowBlog-Democrats condemn 'slush fund' as Trump eyes possible settlement with the IRS
Fri May 15, 2026, 06:14 PM
4 hrs ago

Sen. Elizabeth Warren characterized the purported deal as an “insane level of corruption — even for Trump.”

A year ago, Trump endorsed a “compensation fund” for Jan. 6 rioters, though it wasn’t clear where he expected to get the money.

Now we know: He’d get it from us, in the form of a settlement agreement that results in a giant pool of money his team could use to reward his allies without oversight.

Steve Benen (@stevebenen.com) 2026-05-15T17:42:13.603Z

https://www.ms.now/rachel-maddow-show/maddowblog/democrats-condemn-slush-fund-as-trump-eyes-possible-settlement-with-the-irs

More than three months later, as settlement talks between the agency and the Republican’s lawyers continue, money for “charity” doesn’t appear to be the principal goal. ABC News reported:

President Donald Trump is expected to drop his $10 billion lawsuit against the Internal Revenue Service in exchange for the creation of a $1.7 billion fund to compensate allies who claim they were wrongfully targeted by the Biden administration, sources familiar with the matter told ABC News.

The commission overseeing the compensation fund would have the total authority to hand out approximately $1.7 billion in taxpayer funds to settle claims brought by anyone who alleges they were harmed by the Biden administration’s “weaponization” of the legal system, including the nearly 1,600 individuals charged in connection with the Jan. 6 Capitol attack as well as potentially entities associated with President Trump himsel
f.


....Rep. Jamie Raskin of Maryland, the top Democrat on the House Judiciary Committee, issued a related statement, saying, “Donald Trump is orchestrating a $1,700,000,000 fraud on the American taxpayer to line the pockets of his MAGA political allies, another installment in his ongoing effort to turn the federal government into a personal cash machine for his unpopular extremist movement. This is a massive and unprecedented presidential plunder of the American people.”

Raskin’s statement went on, “The President has no authority to conjure up billion-dollar compensation schemes or raid the Judgment Fund which exists to settle valid lawsuits. Trump is systematically converting neutral government mechanisms into a presidential slush fund to build his army of political dependents. … This is a giant affront to the rule of law and a danger to the American system of justice.”

It’s easy to forget, but just two months into his second term, the president endorsed the idea of a possible “compensation fund” for rioters who attacked the U.S. Capitol in his name. Trump didn’t elaborate on the details, but taken at face value, he appeared to describe what would effectively be financial rewards for the criminals he pardoned.

It wasn’t clear at the time where exactly he expected to get the money. Fourteen months later, the answer appears to be coming into focus: Trump would get the money from taxpayers, in the form of a settlement agreement that results in a giant pool of money his team could use to reward his allies. Watch this space.

The only way to do this settlement is to have a valid lawsuit or court action. This lawsuit will be dismissed because of (a) statute of limitations and (b) the lack of judicial jurisdiction due to there being no "case or controversy."
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