President Donald Trump has formally withdrawn his $10 billion lawsuit against the Internal Revenue Service, ending a legal battle tied to the 2019 leak of his confidential tax records. Court documents filed Monday in federal court in Miami show that Trump voluntarily dismissed the case “with prejudice,” preventing the claims from being refiled in the future.
The lawsuit accused the IRS of failing to protect Trump’s tax information after portions of his returns were disclosed to media organizations, including The New York Times and ProPublica. The reports sparked years of political controversy and renewed scrutiny over Trump’s finances during and after his presidency.
The dismissal arrives amid growing reports that the Justice Department had been exploring settlement discussions connected to claims from Trump allies who argue they were unfairly targeted during the Biden administration. According to previous reports, officials had considered establishing a massive compensation fund that could total as much as $1.7 billion.
Individuals potentially eligible for compensation reportedly included some people convicted in connection with the Jan. 6, 2021, attack on the U.S. Capitol. The proposal immediately drew criticism from Democrats and some administration officials, who questioned whether taxpayer money should be used to compensate political supporters and allies.
Critics described the proposed fund as politically motivated and raised concerns about transparency regarding who would qualify for payments. Supporters of Trump, meanwhile, have continued to argue that federal agencies and the Justice Department unfairly targeted conservatives and members of the former president’s political circle.
Despite speculation surrounding a possible settlement arrangement, Monday’s court filing made no mention of any agreement between Trump and the federal government. The filing simply confirmed the case had been permanently dismissed, bringing an end to one of the former president’s high-profile legal fights over the handling of his tax records.
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