How Trump's IRS settlement could block tax audits of him, his family and their businesses

Key Points:

• The US Department of Justice settled President Donald Trump's $10bn lawsuit over leaked tax returns, including an addendum that bars the IRS from auditing Trump, his family, and businesses for tax filings made before May 19, 2026.
• The addendum, described by the DOJ as a customary legal waiver, prevents the IRS from conducting or pursuing any tax audits or investigations related to Trump and his affiliates, a move some lawmakers and legal experts argue violates federal law prohibiting executive interference in IRS audits.
• Critics contend the settlement improperly places Trump and his associates above tax laws and represents an unprecedented and broad protection not typically granted by the DOJ or IRS, raising concerns about potential legal risks for IRS employees.
• As part of the settlement, the government agreed to create a $1.776bn "Anti-Weaponization Fund" to compensate individuals who claim they were unfairly targeted by government investigations, a move criticized by Democrats and others as a politically motivated slush fund.
• Lawsuits have been filed challenging the legality and constitutionality of the settlement and the fund, with plaintiffs arguing it could endanger law enforcement officers and fund individuals involved in the January 6 Capitol riot.