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DOJ's settlement with Trump bans IRS from taking action over his old tax returns

DOJ's settlement with Trump bans IRS from taking action over his old tax returns

Summary

The Justice Department reached a settlement with President Trump that stops the IRS from pursuing claims based on his past tax returns. The deal includes a $1.776 billion fund to compensate people who say they were hurt by government misuse, and the government will formally apologize to Trump.

Key Facts

  • The IRS and Treasury Department are permanently barred from taking action over tax returns filed before the settlement.
  • The settlement covers President Trump, the Trump Organization, and his sons Eric and Donald Jr.
  • The Justice Department created an "Anti-Weaponization Fund" with $1.776 billion for potential victims of government misuse.
  • President Trump will get a formal government apology but no money from the settlement.
  • The deal resolves a $10 billion lawsuit Trump filed over a tax return leak in 2020.
  • The settlement applies only to past tax returns, not future IRS audits.
  • The government says the fund claims will be decided by a panel of five people appointed by the attorney general.
  • The settlement has caused criticism because it is a deal between the president and the government he leads.
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