Trump drops $10 billion lawsuit against IRS
Source: CNBC
Published Mon, May 18 2026 9:13 AM EDT Updated 24 Min Ago
President Donald Trump, his two eldest sons, and the Trump Organization dropped their $10 billion lawsuit against the Internal Revenue Service on Monday, according to a Miami federal court filing. The filing by Trumps lawyers did not say what led to the surprising move, but it suggested it effectively barred a judge from analyzing whether the presidents civil suit was legally valid and from dismissing it if she finds it is invalid.
The dismissal came on the heels of controversy over reports that the Department of Justice was negotiating a settlement with the president that could see the federal government pay $1.7 billion toward a fund to compensate allies of Trump who allege wrongful treatment by the Biden administration. Democratic members of Congress said that would be a slush fund.
CNBC has asked the DOJ if Trumps dismissal of the suit is being made in conjunction with a settlement by the government of his claims outside of court. The court filing on Monday said Donald Trump, Donald Trump Jr., Eric Trump, and The Trump Organization were voluntarily dismissing the lawsuit against the IRS with prejudice.
With prejudice means the plaintiffs can not renew the same claims in another civil complaint. The notice of dismissal came two days before a deadline set by U.S. District Court Judge Kathleen Williams for the DOJ and Trumps attorneys to answer whether a case and controversy exists in this matter so as to establish the Courts jurisdiction.
Read more: https://www.cnbc.com/2026/05/18/trump-dismiss-irs-lawsuit.html
Link to FILING (PDF) - https://storage.courtlistener.com/recap/gov.uscourts.flsd.706172/gov.uscourts.flsd.706172.52.0_5.pdf
Previous article -
President Donald Trump, his two eldest sons, and the Trump Organization dropped their $10 billion lawsuit against the Internal Revenue Service on Monday, according to a Miami federal court filing. The filing by Trump's lawyers did not say what led to the surprising move.
It came on the heels of controversy over reports that the Department of Justice was negotiating a settlement with the president that could see the federal government pay $1.7 billion toward a fund to compensate allies of Trump who allege wrongful treatment by the Biden administration. Democratic members of Congress said that would be a "slush fund."
CNBC has asked the DOJ if Trump's dismissal of the suit is being made in conjunction with a settlement by the government of his claims outside of court. The court filing on Monday said Donald Trump, Donald Trump Jr., Eric Trump, and The Trump were voluntarily dismissing the lawsuit against the IRS "with prejudice." With prejudice means the plaintiffs can not renew the same claims in another civil complaint.
Trump sued the IRS in late January over the leak of his tax information by an IRS employee Charles "Chaz" Littlejohn in 2019 and 2020. A spokesman for Trump's attorneys had no immediate comment on the dismissal.The IRS did not immediately respond to a request for comment.
This is breaking news. Please refresh for updates.
Article updated.
Original article -
President Donald Trump, his two eldest sons, and the Trump Organization dropped their $10 billion lawsuit against the Internal Revenue Service on Monday, according to a court filing in Miami federal court.
The surprising move came on the heels of controversy over reports that the Department of Justice was negotiating a settlement with Trump that would see the federal government pay $1.7 billion toward a fund that could be used to compensate allies of Trump who allege wrongful treatment by the Biden administration.
The court filing on Monday said Donald Trump, Donald Trump Jr., Eric Trump, and The Trump were voluntarily dismissing the lawsuit against the IRS "with prejudice."
With prejudice means the plaintiffs can not renew the same claims in another civil complaint.
This is breaking news. Please refresh for updates.
no_hypocrisy
(55,363 posts)BEFORE the Trumps dropped the lawsuit?
Lovie777
(23,708 posts)that is illegal.
no_hypocrisy
(55,363 posts)YOURE FIRED!
gab13by13
(32,760 posts)Not even close to the real story.
Lovie777
(23,708 posts)but "with prejudice" by shithole and sons is not in line of thought.
gab13by13
(32,760 posts)Taxpayer dollars in a fund for Krasnov to bribe his friends,
https://allaboutlawyer.com/trump-irs-lawsuit-1-7-billion-weaponization-fund-jan-6-explained/
BumRushDaShow
(172,205 posts)The other stuff about the slush fund was posted LAST WEEK and yesterday -
https://www.democraticunderground.com/10143664313
https://www.democraticunderground.com/10143666271
Try to keep up.
33taw
(3,366 posts)BumRushDaShow
(172,205 posts)I go through a lot of effort to bring news here during an era where it was threatened that they would "flood the zone". Meaning going through all the distraction clown show bullshit and comb through piles of entertainment/sports/lifestyle stuff, to reveal news items about things that have and will impact people's lives.
There are DUers who continually attempt to cast doubt on what is posted for whatever reasons and this is why I spend time including press releases, statements, court filings, court rulings, and other things to establish the veracity.
I wish others would do the same.
mcar
(46,352 posts)33taw
(3,366 posts)I also think it is good to question authority. You certainly can believe what you want and act how you want.
Simply saying, this is from a court filing from today and supersedes earlier posts while referencing them would be adequate.
Thank you for providing information and doing research.
BumRushDaShow
(172,205 posts)Guard on duty just before Epstein died is testifying today for the House Oversight Committee -
https://www.democraticunderground.com/10143666553
Greenland is "back in the news" - https://www.the-independent.com/news/world/americas/us-politics/trump-greenland-control-negotiations-b2978797.html (just spotted this)
New helipad for new Marine One - https://thehill.com/homenews/administration/5883247-trump-marine-one-helipad-white-house-reports/ (just spotted this)
SCOTUS remands a pile of VRA cases back to lower courts for review - https://www.democraticunderground.com/10143666725 (just posted this)
And with respect to my disagreement - the poster (who is from my same state) is very opinionated and is not shy about making his opinions known very vociferously. We agree on some things and disagree on others.
But I protest when people come parachuting in to make definitive statements that are either incorrect or just because they "say so". That may be their right but it is also my right to object and explain why.
no_hypocrisy
(55,363 posts)against the IRS by those whose names were released.
UpInArms
(55,343 posts)That was on his shift
What an evil collection of cells
LetMyPeopleVote
(181,993 posts)The presidents civil case against the IRS is likely over. What we dont yet know is what kind of deal precipitated the withdrawal.
Link to tweet
https://www.ms.now/rachel-maddow-show/maddowblog/trump-moves-to-withdraw-10-billion-lawsuit-irs-slush-fund-reports
In a court filing made official on Monday morning, the presidents lawyers said their clients, including Trump, his family business and two of his adult sons, are voluntarily dismissing their civil suit.
The court filing, however, did not refer to or disclose any details about a potential settlement with the administration.....
The fund, which would have little oversight, was immediately condemned by congressional Democrats and legal experts as a slush fund that would be used to benefit the presidents political allies, including Jan. 6 rioters. These concerns led 93 Democratic lawmakers to file a brief with the judge in this case, arguing Trump is working to undermine the Constitution by seeking a settlement from the IRS.
A spokesperson for Trumps legal team told ABC News last week, The IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization to the New York Times, ProPublica and other left-wing news outlets, which was then illegally released to millions of people. President Trump continues to hold those who wrong America and Americans accountable.
I have been following this "case" and I believe that the so-called lawsuit was void due to a lack of jurisdiction and due to statute of limitations. The federal court hearing the case had amicus briefs filed last week that all take the position that there was no "case or controversy." Without a valid lawsuit, I doubt that this settlement will hold up.
FakeNoose
(42,390 posts)It seems oddly random, unless maybe he has 1,700 "friends " and he's giving them each $1 million.
BumRushDaShow
(172,205 posts)There were over 1600 J6 cases that were prosecuted, with most ending in plea deals and a handful that actually went to trial. Most of those folks (not all) got pardons or commutations and then there may be others who he wanted to shower with $$$.
The slush fund was to be handled by the ridiculously named "Truth and Justice Commission".
YodaMom2
(212 posts)The actual slush fund figure is $1,776,000,000. In honor of the 250th Anniversary, dontcha know
FakeNoose
(42,390 posts)This is how he backs down off that stupid lawsuit against Uncle Sam, which he wouldn't have won anyway.
So now he has dropped the lawsuit and I'm guessing there will be no oversight as to what actually happens to that $1.7 billion. Practically none of it will be distributed, he'll keep almost all of it. Remember the "Trump Foundation"? Yeah, same bullshit, different day.
COL Mustard
(8,386 posts)Aint he a great guy????
Bengus81
(10,362 posts)as the dipshits that plunked down $100 deposit ($60 million) for a so called Trump cell phone.
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