President Donald Trump has filed a $10 billion lawsuit against the Internal Revenue Service and the U.S. Treasury Department, alleging that the agencies failed to safeguard his confidential tax records. The lawsuit stems from a high-profile leak of Trump’s tax information in 2020, which later became the basis for multiple news reports examining his tax payments and business finances.
The suit was filed in federal court in Florida and names Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization as plaintiffs. It argues that the federal government bears responsibility for the unauthorized disclosure of sensitive taxpayer data and seeks substantial financial damages as compensation for the alleged harm caused by the breach.
At the center of the case is a former IRS contractor, Charles Edward Littlejohn, who accessed and disclosed tax returns belonging to Trump and his family members while working on a government contract. Littlejohn later admitted to leaking the information to media organizations and is currently serving a five-year prison sentence following a guilty plea. Prosecutors have stated that he abused his authorized access to confidential records and used the information to further his own political views.
The leak drew widespread public attention because Trump had long resisted calls to release his tax returns, breaking with a tradition followed by recent presidential candidates and officeholders. During his campaigns and presidency, Trump argued that audits and other considerations justified keeping the documents private, despite ongoing political and public pressure.
Once the information became public, major news outlets published detailed reports based on the leaked data. One prominent report concluded that Trump paid $750 in federal income taxes in both 2016 and 2017. Subsequent reporting indicated that he paid the same amount in 2021, his first year in office. Additional investigative articles later analyzed discrepancies and broader patterns in the tax records, drawing further scrutiny to Trump’s finances.
According to the lawsuit, the disclosure of the tax information caused significant reputational and financial damage. The filing contends that the leak embarrassed the plaintiffs, harmed their business interests, and negatively affected their public standing. It also argues that the exposure of the information presented an incomplete or misleading picture of their finances, compounding the alleged harm.
The legal action fits into a broader pattern of Trump seeking compensation from the federal government over investigations and actions he claims were unjustified. In the past, he has demanded large financial settlements related to federal probes, though those efforts have not resulted in payouts.
In response to the broader implications of the leak, the Treasury Department recently took administrative action by canceling all contracts with the firm that employed Littlejohn at the time, a defense and national security technology company that worked with federal agencies. The move underscores the seriousness with which the government is treating the breach of taxpayer confidentiality.
The lawsuit is likely to face significant legal hurdles, including questions about government liability, damages, and the extent of agency responsibility for the actions of individual contractors. As the case proceeds, it is expected to renew debate over data security within federal agencies and the legal consequences of breaches involving high-profile public figures.
