US judge voids Donald Trump 'improper' $1.8 billion settlement with IRS
Summary
A US judge canceled a settlement between President Donald Trump and the IRS that stopped tax audits on Trump and his businesses. The judge said the lawsuit was filed for a wrong reason because Trump, as president, controls the IRS and its parent Treasury Department.Key Facts
- President Donald Trump and his family sued the IRS for $10 billion after leaked tax returns were published.
- The settlement gave Trump, his family, and businesses broad protections from IRS audits.
- The settlement also created a $1.8 billion taxpayer-funded program to compensate people claiming they were unfairly investigated, but this was later dropped.
- District Judge Kathleen Williams said the case had no real legal basis because Trump controls the IRS as president.
- The judge called the lawsuit an "improper purpose" to get a court's approval for a settlement without legal grounds.
- She accused government officials of failing to defend the public interest and violating their authority.
- The judge referred one of Trump’s lawyers for legal discipline and limited another lawyer’s court appearances in her court for one year.
- Trump’s team said the president will keep holding people accountable, but there was no direct response to the ruling from Trump or the Justice Department.
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