Trump Sues His OWN IRS $10B

President Trump sues his own IRS for $10 billion over leaked tax returns, then floats donating it all to charity—what game is he really playing?

Story Snapshot

Trump, sons, and Trump Organization file $10B suit against IRS and Treasury for failing to stop contractor Charles Littlejohn’s leaks.
Littlejohn leaked Trump’s tax data to New York Times in 2020; pled guilty in 2023, sentenced to five years.
Trump considers settling by giving proceeds to charities like American Cancer Society to sidestep personal gain criticism.
Unprecedented: Sitting president litigates against agencies he controls, filed in Florida court.

Lawsuit Origins Trace Back to 2020 Leaks

Charles Littlejohn, IRS contractor, accessed Trump’s confidential tax returns before 2020 election. He leaked them to The New York Times, revealing financial losses and tax strategies. Trump refused public release, breaking modern presidential tradition. Littlejohn pled guilty in 2023 to unauthorized disclosures, including data to ProPublica. Federal court sentenced him to five years. Trump Organization claimed business harm from exposed holdings.

https://twitter.com/FoxNews/status/2018007357234491786

January 2026 Filing Targets Agency Negligence

Donald Trump, Donald Trump Jr., Eric Trump, and Trump Organization filed suit January 29, 2026, in Southern District of Florida. Plaintiffs accuse IRS and Treasury of negligence in preventing Littlejohn’s breach. Littlejohn testified in 2024 about leaking all Trump business data. Judge Kathleen Williams, Obama appointee, oversees despite Trump-friendly venue. Suit demands $10 billion in damages from taxpayers.

Trump Floats Charitable Settlement on Air Force One

January 31, 2026, aboard Air Force One, Trump told reporters he is considering charity donation of any proceeds. He cited advice from outside advisors and named American Cancer Society. Trump said, “We’re thinking about doing something for charity… Nobody would care because it’s going to go to numerous very good charities.” Spokesperson called Littlejohn a rogue, politically motivated actor. No formal settlement yet.

Stakeholders Navigate Executive Branch Conflict

Trump leads executive branch overseeing defendants IRS and Treasury. His appointees may respond, forcing DOJ to defend against him personally. Echoes Trump’s prior $230 million claim against DOJ. Trump family seeks privacy vindication; agencies protect taxpayer data security. Power dynamics strain: President sues own administration in bid for massive payout reframed as public good. Common sense demands accountability for leaks weaponized politically.

Senator Wyden labeled it “shameless corruption” January 30, citing hypocrisy amid administration data practices. Facts show Littlejohn’s conviction validates breach claims; Wyden’s partisan jab ignores rogue actor’s guilt, aligning with conservative view of deep state overreach.

Impacts Ripple Through Taxpayers and Politics

Taxpayers risk $10 billion liability; short-term refund delays possible if shutdown looms. Long-term, precedent for executive self-suits erodes norms. IRS credibility suffers on data protection, chilling contractor hires. Political optics challenge Trump: Charity pivot counters greed accusations. Social debate pits elite privacy against transparency demands. Broader tax enforcement weakens amid weaponization fears.