Trump Could Get $1.7 Billion Payday In IRS Case Over Leaked Tax Returns-Here’s Why

Key Points:

• President Donald Trump is reportedly close to settling his lawsuit against the IRS over leaked tax returns, potentially creating a $1.7 billion fund to benefit his political allies without a court ruling on the lawsuit’s validity.
• Legal experts suggest that if Trump and the IRS settle before a judge rules on the case’s legitimacy, the judge would likely be unable to block the settlement, even if the lawsuit should not proceed.
• Critics, including ethics watchdog CREW, condemn the settlement as a blatant violation of the Constitution’s Domestic Emoluments Clause, accusing Trump of circumventing judicial processes to secure taxpayer funds.
• The settlement talks accelerated unusually quickly, raising concerns about the adversarial nature of the litigation, with a court-appointed attorney noting potential risks of collusion between Trump and the IRS.
• The $1.7 billion fund aligns with Trump’s broader efforts to provide financial retribution to allies and Jan. 6 rioters, though congressional Democrats oppose such payouts and have introduced legislation to block them, though passage remains uncertain.