US & Canada

Trump seeks ‘resolution’ of his $10bn lawsuit against IRS, spurring concern | Donald Trump News

Court filings have indicated that lawyers for President Donald Trump are seeking a resolution with the Department of Justice over a $10bn lawsuit he filed against the Internal Revenue Service (IRS).

But the trouble, critics say, is that such a settlement would leave Trump essentially negotiating with an executive branch under his control.

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Friday’s court filing, however, emphasises the efficiency of seeking a settlement.

In the document, Trump’s lawyers call for the case to be paused for 90 days to allow a resolution to be hammered out.

“This limited pause will neither prejudice the parties nor delay ultimate resolution,” the filing says. “Rather, the extension will promote judicial economy and allow the Parties to explore avenues that could narrow or resolve the issues efficiently.”

How did the case start?

The case stems from an incident that began in 2017, when a worker named Charles “Chaz” Littlejohn was re-hired as a contractor through the government consulting firm Booz Allen.

While working on IRS files, Littlejohn stole copies of Trump’s tax returns, which had been the source of prolonged public scrutiny.

Until Trump, every president since Richard Nixon had released their tax returns as a gesture of transparency. Trump, however, claimed he could not, citing ongoing audits.

The tax returns Littlejohn stole were ultimately released to the media, and in 2020, The New York Times released a series of articles that showed Trump paid no income taxes in 10 of the 15 preceding years.

Other years, he paid relatively small sums, like $750, because he reported more losses than gains. ProPublica also ran stories based on the leaked tax returns, highlighting inconsistencies and Trump’s low tax payments.

Privacy law protects taxpayer information from being released by the IRS without explicit permission. Littlejohn was sentenced to five years in prison in 2024.

But in late January of this year, Trump filed a lawsuit arguing that he, his businesses and his sons Eric and Donald Jr had suffered “significant and irreparable harm” from the leaks.

The defendants in the lawsuit were the IRS and its overseeing body, the Treasury Department, both of which are part of the executive branch.

“Defendants have caused Plaintiffs reputational and financial harm, public embarrassment, unfairly tarnished their business reputations, portrayed them in a false light, and negatively affected President Trump and the other Plaintiffs’ public standing,” the lawsuit reads.

Questions of ethics and legality

But experts have warned that the lawsuit contains flaws that would normally prompt the Justice Department, also under Trump’s control, to seek dismissal.

The lawsuit, for instance, arrives at its whopping $10bn sum by supposedly tallying up media references to Trump’s leaked tax returns.

However, experts say the formula for damages is calculated by the number of unauthorised disclosures by a government employee, not by media re-printings.

Then there is the question of Littlejohn’s employment status. He was an outside contractor, not a government employee.

Trump also has to contend with the two-year statute of limitations in the case. The lawsuit contends that “President Trump did not discover the numerous violations” of his tax returns until January 29, 2024.

But critics point out he had posted on social media about his tax information being “illegally obtained” as far back as 2020, when The New York Times published its series.

Opponents say the lawsuit should be dismissed or at least delayed until Trump is no longer president. Otherwise, they argue it represents a conflict of interest, with Trump fundamentally negotiating with his own administration for a payout.

Controlling ‘both sides of the litigation’

Trump himself has acknowledged that such a payment would “never look good”. But he has justified the sum by saying it would be donated to charity.

“Nobody would care because it’s going to go to numerous very good charities,” he said in February.

Even that, legal experts argue, could run afoul of the Emoluments Clause in the US Constitution, which prohibits the president from profiting off his position, apart from his salary.

Government watchdogs have attempted to stop a settlement from unfolding. On February 5, for instance, the group Democracy Forward filed an amicus brief arguing the court should act to prevent an abuse of power.

“This case is extraordinary because the President controls both sides of the litigation, which raises the prospect of collusive litigation tactics,” the brief explains.

“To treat this case like business as usual would threaten the integrity of the justice system and the important taxpayer and privacy protections at the heart of this case.”

But the $10bn IRS lawsuit is not the only case Trump is seeking to settle with his own government. In 2023 and 2024, Trump filed administrative complaints seeking compensation for federal investigations he considered to be unfair.

One complaint concerns an FBI investigation into alleged Russian interference in the 2016 election, and the other is about the FBI’s raid of Trump’s Mar-a-Lago estate after he refused a subpoena to return classified documents.

For those complaints, Trump is reportedly seeking additional damages to the tune of $230m.

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US judge blocks Justice Department bid to seize voter data in Rhode Island | Donald Trump News

Ruling is latest loss for Trump administration, which has sought access to state voter data ahead of the US midterms.

A federal judge in the United States has dismissed a Department of Justice lawsuit seeking to access voter data from Rhode Island.

The decision on Friday was the latest loss for the administration of President Donald Trump, which has sought to access voter data in dozens of states across the country.

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In the ruling, US District Court Judge Mary McElroy sided with election officials and civil rights groups, writing that the Justice Department does not have the authority “to conduct the kind of fishing expedition it seeks here”.

Rhode Island Secretary of State Gregg Amore praised the ruling in a statement afterwards.

“The executive branch seems to have no problem taking actions that are clear Constitutional overreaches, regularly meddling in responsibilities that are the rights of the states,” Amore wrote.

“But the power of our democratic republic, built on three, coequal branches of government, is clearer than ever before.”

The Justice Department has sued at least 30 states for their voter information, maintaining it needs the information to secure election security. State officials have said that turning over the data raises an array of privacy concerns.

Under the US Constitution, state officials administer elections. Only Congress can pass laws related to how states oversee voting.

But Trump has sought to transform election administration, claiming that voting has been marred by widespread fraud.

In particular, Trump has continued to maintain that the 2020 election, in which he lost to former President Joe Biden, was “stolen”.

No evidence has ever been put forward to support the claims.

Federal judges have rejected attempts in California, Massachusetts, Michigan and Oregon to force the states to hand over voter files to the federal government. At least 12 states, however, have willingly provided or pledged to provide voter information to the Trump administration.

The push for voter information is one of several actions that have raised concerns over how the Trump administration will approach the midterm elections in November, which will decide the makeup of the US Congress.

He is currently calling on Republicans to pass the so-called SAVE America Act, a bill that would create higher documentation standards for voters to prove their citizenship when registering to vote and casting ballots.

The majority of Republican lawmakers have embraced Trump’s claim that the law is needed to prevent non-citizens from registering to vote, despite studies showing that instances of voter fraud are glancingly rare.

Critics say the measure would risk disenfranchising millions of voters, particularly those who have legally changed their names, which is a common practice in US marriages.

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