Judge says Trump admin attempted to ‘manipulate the judicial process’ with its IRS settlement

BREAKING NEWSJul. 13, 2026, 5:50 PM UTCDonald TrumpDonald TrumpJudge says Trump administration attempted to ‘manipulate the judicial process’ with its IRS settlementU.S. District Judge Kathleen Williams said that the lawsuit and settlement were pursued in “bad faith”, recommending disciplinary action against some of the president’s lawyers.Listen to this article with a free profile00:0000:00President Donald Trump at the White House in Washington, D.C., on July 6.Shawn Thew / EPA / Bloomberg via Getty ImagesShareAdd NBC News to GoogleBy Gary Grumbach and Dareh GregorianA federal judge in Florida has found President Donald Trump’s lawsuit against the Internal Revenue Service was brought in “bad faith” for an “improper purpose” — and slapped sanctions on some of those involved. Subscribe to read this story ad-freeGet unlimited access to ad-free articles and exclusive content.U.S. District Judge Kathleen Williams, an Obama appointee, said that the lawsuit “was not brought to vindicate rights,” but to “manipulate the judicial process.” Williams pointed out that despite arguments to the contrary from Trump’s attorney, these were not ordinary litigants. She noted that, as president, Trump has jurisdiction over the Justice Department, Treasury Department and the IRS.“After a review of the record, and the Parties’ statements, the Court declines to adopt or accept the credulous exercise of divorcing President Trump’s current job title from an understanding of what happened here,” the judge wrote. She said the facts of the case show it was “an attempt to use the Court to provide some legitimacy to an agreement to confer immunity to people and entities affiliated with the President,” while spending billions of taxpayer dollars. She said the facts of the case demonstrate “there was never adverseness between the Parties; there was never a case or controversy; and there was never a question as to who would prevail.” “Even the Fund amount—$1.776 billion—speaks of a ‘branding’ effor...