Trump drops IRS lawsuit, paving the way for a settlement

Law Trump drops IRS lawsuit, paving the way for a settlement May 18, 202610:58 AM ET Carrie Johnson The Internal Revenue Service building is seen in February 2025 in Washington, D.C. Tasos Katopodis/Getty Images hide caption toggle caption Tasos Katopodis/Getty Images President Trump is moving to dismiss a $10 billion lawsuit he filed against the IRS over the leak of his tax returns, according to a court filing. That could pave the way for a big settlement with the government he leads even as ethics watchdogs and Democrats in Congress are trying to intervene. Trump and the Trump Organization sued the Internal Revenue Service and the Treasury Department in January demanding $10 billion over the leak of his tax returns years ago. Legal experts described the case as weak, since the leak has been attributed to a federal contractor, not a full-time employee of the U.S. government. That man is currently serving prison time. They also questioned whether the statute of limitations might have expired; the leaks of tax information happened between 2018 and 2020. Sponsor Message But the Justice Department recently told a judge it had entered negotiations to resolve the dispute. That could mean the government Trump leads would be in line to pay him personally. Politics Trump would like the government he leads to pay him billions U.S. District Judge Kathleen Williams of Miami is presiding over the case. The judge recently raised her own doubts, citing Trump's own rhetoric that in some ways, he was negotiating with himself as both plaintiff and president.  "Although President Trump avers that he is bringing this lawsuit in his personal capacity, he is the sitting president and his named adversaries are entities whose decisions are subject to his direction," Judge Williams wrote last month. "Indeed, President Trump's own remarks about this matter acknowledge the unique dynamic of this litigation. Accordingly, it is unclear to this Court whether the Parties are sufficiently adverse...