A U.S. judge has voided a settlement between former President Donald Trump and the Internal Revenue Service (IRS), which had provided Trump and his associates with significant protections from audits. The ruling, issued by District Judge Kathleen Williams, stated that Trump's lawsuit regarding leaked tax returns was filed for an 'improper purpose.' Trump, along with his two eldest sons and the Trump Organization, had sued the IRS for $10 billion following the disclosure of confidential records by a former contractor.
The case, which concluded in May, resulted in a contentious agreement that granted Trump and his affiliates protection from tax examinations and claims. It also proposed a $1.8 billion program funded by taxpayers to compensate individuals who claimed to have been targeted by politically motivated investigations, although this program was later abandoned.
Judge Williams noted that there was no genuine legal dispute between Trump and the IRS, as the president effectively controls the agency. She criticized the Justice Department for failing to defend the public interest and referred one of Trump's attorneys involved in the settlement to legal disciplinary authorities. Additionally, she limited another Trump lawyer's ability to appear in her court for one year. There was no immediate comment from Trump or the Justice Department regarding the ruling.