Judge voids Trump’s $1.8bn IRS deal
A federal judge has struck down a controversial $1.8 billion settlement between President Donald Trump and the Internal Revenue Service, ruling that the deal improperly shielded him from tax audits and created an unprecedented fund for alleged government “targets.”
US District Judge Kathleen Williams delivered the decision Monday, voiding the agreement and barring Trump, his sons and the Trump Organization from citing its terms in future proceedings. The ruling clears the way for the IRS to resume audits into Trump’s tax filings.
Williams described the lawsuit that led to the settlement as “never about a party seeking judicial resolution,” but rather a maneuver by Trump’s lawyers and allies to legitimize immunity for the president and his associates. She referred one attorney to the Florida bar for possible disciplinary action and suspended another from practicing in her district for a year.
The abandoned “anti‑weaponisation” fund, unveiled in May, was meant to compensate individuals claiming they were unfairly targeted by government agencies. Critics warned it could have extended payments to people prosecuted for the January 6 Capitol riot. The plan collapsed in June after a separate court blocked its implementation.
Trump’s legal team insists the IRS failed to protect his private tax information, pointing to leaks that revealed he paid only $750 in federal income taxes in 2016 and none in ten of the previous fifteen years. But tax experts say the settlement amounted to a “sweetheart deal” that undermined safeguards against political interference.
Brandon DeBot of NYU’s Tax Law Center said the ruling was vital but urged Congress to act. “The court’s decision is important, but does not remove the need for congressional action to nullify the entire deal and to prevent any similar attempts at presidential self‑dealing in the future,” he noted.
The judgment adds another layer to Trump’s fraught relationship with the IRS, reviving questions about presidential power, accountability and the integrity of America’s tax system.
Source: BBC
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