Judge reopens Trump’s IRS suit to examine $1.8bn settlement with justice department
Summary
A federal judge reopened President Donald Trump’s $10 billion lawsuit against the IRS to investigate a $1.8 billion settlement with the Justice Department. The judge wants to examine claims that the settlement resulted from collusion and fraud, questioning whether the deal improperly benefits Trump’s family and bypasses judicial review.Key Facts
- President Trump and his sons sued the IRS after their tax returns were leaked by a former contractor.
- Trump dropped the lawsuit last week in exchange for a settlement that bars audits of Trump family tax returns.
- The Justice Department created a $1.8 billion fund to compensate people who claim they were unfairly targeted by the government.
- A bipartisan group of 35 former federal judges asked the court to reopen the case, citing concerns about fraud and lack of transparency.
- Judge Kathleen Williams ordered Trump’s lawyers to explain the settlement and whether there was any collusion with the government to avoid court scrutiny.
- Only acting Attorney General Todd Blanche signed the part of the settlement that protects the Trump family from future IRS audits.
- Charles Littlejohn, a former IRS consultant, was sentenced to prison for leaking tax data, including Trump family returns.
- The fund and settlement have been criticized by some lawmakers from both parties as a misuse of taxpayer money and a political favor.
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