Democrats Assail Reported $1.7 Billion Trump-IRS Settlement Ahead of May 20 Court Deadline
Updated
Updated · CNBC · May 15
Democrats Assail Reported $1.7 Billion Trump-IRS Settlement Ahead of May 20 Court Deadline
9 articles · Updated · CNBC · May 15
Democratic lawmakers on Friday denounced reports that Donald Trump may drop his $10 billion IRS lawsuit in exchange for a $1.7 billion compensation fund they say could benefit his political allies.
ABC News and the New York Times reported the Justice Department is weighing a settlement that could include taxpayer-funded compensation, a truth-and-reconciliation-style commission, and possibly an end to audits involving Trump, his family and business.
The dispute stems from Trump's suit over the 2019 leak of his tax returns, filed against the IRS and Treasury while he is president — an arrangement that has raised conflict-of-interest concerns.
Judge Kathleen Williams has given the sides until May 20 to explain whether the case can even remain in federal court, questioning whether Trump and executive-branch agencies under his control are sufficiently adverse parties.
When a president sues the government he leads, who protects the public's interest in the settlement?
Could a lawsuit fund with little oversight set a new precedent for spending taxpayer money?
Trump’s $1.7 Billion IRS Settlement: Legal, Ethical, and Political Fallout Over Proposed Compensation Fund for Allies
Overview
The U.S. District Court is about to decide on a proposed settlement in a high-profile lawsuit where President Trump, his sons, and the Trump family business sued the IRS for at least $10 billion after a former contractor allegedly leaked their confidential tax information to the media. Judge Kathleen Williams has raised serious concerns about whether Trump and the IRS are truly adversaries, since Trump leads the executive branch that oversees the IRS. This question has led to intense settlement talks, with both sides now required to submit briefs justifying the case’s legitimacy before a scheduled hearing.