Judge Williams Orders Trump to Answer $1.776 Billion IRS Settlement Collusion Claims by June 12
Updated
Updated · TPM · Jun 1
Judge Williams Orders Trump to Answer $1.776 Billion IRS Settlement Collusion Claims by June 12
6 articles · Updated · TPM · Jun 1
$1.776 billion is at the center of Judge Kathleen Williams’ order requiring Trump and other plaintiffs to answer by June 12 allegations that their IRS settlement was collusive, deceptive and potentially a fraud on the court.
Three issues drove the order: whether the parties were truly adverse, whether the dismissal rested on deception, and whether the case should be reopened because the court itself was allegedly victimized.
Williams also faulted the Justice Department’s handling of the case, citing its failure to formally appear, an addendum signed only by acting Attorney General Todd Blanche, and a weaker defense of the IRS than in similar litigation.
The settlement purportedly created an “anti-weaponization” fund and granted Trump entities a release from as much as $100 million in back taxes, raising the prospect of a president effectively settling with his own government.
Political and legal pressure is building around the deal: Trump could appeal to the 11th Circuit, DOJ could seek to intervene, and as many as 12 Senate Republicans have balked at the fund.
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A court orders a president's name removed from a memorial. What are the legal limits on an administration's power over federal institutions?
Trump’s $1.8 Billion Settlement With IRS and Creation of "Anti-Weaponization Fund" Face Fraud and Emoluments Allegations
Overview
U.S. District Judge Kathleen M. Williams issued an order on May 29, 2026, requiring former President Donald Trump and his legal team to answer serious allegations of collusion and fraud. The judge warned that sanctions could be imposed if the lawsuit was filed for an improper purpose, such as forcing a settlement. This action follows a deal settling Trump’s $10 billion case against the IRS, which reportedly gave substantial tax benefits to Trump, his family, and his businesses. The Justice Department defended the settlement, calling the motion against it frivolous, but the court’s scrutiny highlights concerns about the legitimacy and intent behind the agreement.