The IRS Thought it Could Fight Trump’s Lawsuit, but it Reached a Deal Anyway
The New York Times • • nation
Key Points:
- IRS lawyers drafted a 25-page memo recommending dismissal of President Trump’s $10 billion lawsuit against the agency for alleged mishandling of his tax information, but the Justice Department chose to settle instead.
- The settlement led to the creation of a $1.776 billion “anti-weaponization” fund intended to compensate individuals claiming wrongful targeting by the federal government, with no money going directly to Trump.
- Critics argue the fund could be used to benefit Trump’s political allies, including those involved in the January 6 Capitol attack who were pardoned, raising concerns about potential corruption.
- The Justice Department did not contest Trump’s claims in court and has provided limited details about eligibility for the fund, while Trump retains the power to dismiss members of the oversight commission appointed by the acting attorney general.
- Treasury and IRS officials have declined to comment on the matter, and the Justice Department has not explained its rationale for settling the lawsuit rather than pursuing legal defenses.