U.S. government agrees to drop tax claims against Trump

The U.S. government will permanently drop tax claims against President Trump, his sons and the Trump Organization as part of a settlement over a lawsuit alleging leaks of his tax returns.

The agreement, detailed in a document posted to the Justice Department website, bars the government from examining or prosecuting current tax issues involving Trump and his family. It forms an addendum to the original settlement announced earlier, which resolved a $10 billion lawsuit filed by Trump against the Internal Revenue Service and Treasury Department. Acting Attorney General Todd Blanche signed the expanded document. Trump will receive a formal apology from the government but no monetary damages, according to the terms. A nearly $1.8 billion fund was also created to compensate allies who believe they faced unjust investigations, drawing criticism from Democrats and watchdogs as potentially corrupt. Judge Kathleen Williams dismissed the lawsuit after noting a lack of transparency in the process from the agencies involved.

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Illustration of President Trump settling IRS lawsuit with anti-weaponization fund, featuring signing in Oval Office with critics in background.
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Trump settles IRS lawsuit with new anti-weaponization fund

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President Trump has dismissed his $10 billion lawsuit against the IRS. The move paves the way for a $1.776 billion settlement fund aimed at compensating those who claim government overreach. Critics in Congress and ethics groups have raised concerns over the arrangement.

President Donald Trump is exploring a settlement in his $10 billion lawsuit against the IRS and Treasury Department.

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The US Court of International Trade ruled on Thursday that the 10% temporary tariffs imposed by Donald Trump in February are illegal.

President Donald Trump announced on February 21, 2026, that he would increase global tariffs from 10% to 15%, following a U.S. Supreme Court decision striking down his previous tariffs. The court ruled 6-3 that the International Emergency Economic Powers Act does not authorize such broad import taxes. The move comes amid divided reactions from Republicans and potential refunds of billions in collected duties.

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A federal judge in Washington, D.C., has ruled that the IRS violated internal rules approximately 42,695 times by disclosing confidential taxpayer addresses to Immigration and Customs Enforcement without proper verification. The decision stems from a lawsuit filed by a nonprofit and two unions challenging data-sharing practices under the Trump administration. The ruling highlights procedural lapses in over 47,000 requests from ICE.

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