WTF?! New DOJ document says US govt is now prohibited from pursuing tax claims against Trump or his family in the future

[Ms. Toad]

17. This is standard language in settlement agreements -

It does not prevent future audits, etc., for anything May 18, 2026 or later. It just finally resolves everything which occurred before the settlement date. If settlement clauses didn't contain this language, one or the other sides could be holding knowledge they are not disclosing to the other, agree to settle, then turn around and sue again.

The key phrase is "as of the effective date of the the settlement agreement." Anything after that is fair game.

(I do still believe that this isn't a legally valid settlement agreement - the judgment order dismissing the case (absolute and with prejudice) does not mention the settlement agreement, so I'm still not clear there is a legal basis for the settlement agreement. But as to the no audits, etc. for past actions, that is absolutely standard. I would never advise any of my clients to sign an agreement resolving a disputed matter without a similar clause.)