Why Trump’s $10 Billion IRS Claim Is Raising Alarm Bells
The legal settlement under discussion between the IRS and Donald Trump is so blatantly outrageous that it takes the breath away.
Sourced reports from inside the IRS this week disclosed that there are serious talks underway to settle a $10 billion claim by Trump, along with two of his sons and the Trump family business, that they were wronged by a leak of some of his tax information.
The talks have included direct payments to the Trumps, forgoing audits, and, on Friday, a proposal for a $1.7 billion fund to recompense Trump political allies, including the more than 1,500 convicted for crimes arising from the Jan. 6. 2021, Capitol riots to keep Trump in office beyond a lost election.
Whatever the final amount of any such settlement or even the final payees, it means that that the Trump government will be paying taxpayer funds or another public benefit to the very president who oversees the department that would cough up the money.
There are legal arguments galore about the obvious conflict of interest, and a hearing before U.S. District Judge Kathleen M. Williams in Florida is set for May 27 to determine if a sitting president can constitutionally sue federal agencies he oversees.
Clearly, the entire basis of the court system is to pit adversarial arguments, not to have both sides representing the same client. It’s not even clear whether the Justice Department should be arguing for Trump or defending the IRS and Treasury.
Thus, internal talks about a settlement.
According to New York Times reporting, the Justice Department is assessing how to resolve the case, including evaluating settlement options that include compensation using taxpayer funds to an agreement that the IRS drop audits of Trump, his family, and his business entities.
The Trump lawsuit argued that IRS and Treasury failed to prevent a former IRS contractor, Charles Littlejohn, from gaining access to Trump’s tax documents, which were shared with ProPublica and The New York Times. Littlejohn went to prison for five years as a result.
What Exactly Was the Damage?
The lawsuit skips over the fact that Trump is the only president not to share publicly information about his tax returns or to explain exactly what harm has befallen the Trump family or its enterprises as a result. How does being elected president, an office that invites scrutiny, constitute harm here? How has his family businesses suffered as they continue to draw oversized donations from billionaires and Trump faithful alike?
The $10 billion number seems plucked from the air. If Trump truly believes in the principle, he could have sued for one dollar.
Of course, Trump and his family businesses have repeatedly disregarded ethical rules and practices aimed at preventing government officials from profiting from public office. Clearly any substantial settlement payment in this case could dwarf his other self-serving government grifts.
The official White House stance is this: “President Trump continues to hold those who wrong America and Americans accountable.”
Obviously, Trump and this Justice Department have held a particular partisan view over what wrongs exist for which to seek accountability. That is how we have seen hundreds pardoned for Jan. 6, 2021, Capitol riot charges and prosecutions of Trump political opponents, as well as the dismissal of scores of Justice Department prosecutors who would not follow Trump’s insistence to bring charges against perceived enemies without evidence of crimes.
Is Any of It Legal?
Among the most curious aspects to the settlement talk is that a successful agreement could simply avoid going to court to determine the most basic conflict of interest.
If a settlement comes before Judge Williams can decide whether the underlying lawsuit is valid, her authority to overturn any agreement would be limited. Even if the judge were to find such a settlement to be collusive or reached in bad faith, legally it would likely be viewed as a private agreement with a federal agency.
Apart from compensation, forgoing future audits of Trump businesses clearly would be a huge personal gain for someone who brags that his companies play fast and loose with tax laws. The leaked tax documents showing that Trump reported losses in his IRS audits could cost Trump more than $100 million.
As it happens, many legal experts see a defense to the Trump lawsuit on technical grounds about its filing and the bloated damages sought. There also is an argument about whether the IRS is responsible for the actions of a contractor who stole documents.
A similar lawsuit in 2024 ended in a public apology, not a government payout.
Trump already has built a legacy of personal gain in office that far exceeds that for any other president, with foreign gifts, including a Qatari royal jet, investments in cybercurrency or real estate businesses he or his family run with presidential promotion, and the continuing collections of tens of millions of dollars from those who seek influence with his office.
Still, arranging for a whopping payment by taxpayers whom Trump fleeced in his IRS tax avoidance schemes seems a huge cherry atop a grift sundae.
On Adding to the No-Bid Contracts
The Trump administration is attempting to bypass competitive bidding procedures to speed work on the proposed 250-foot, triumphal arch near Arlington National Cemetery by leveraging an existing White House contract with AECOM Services, documents obtained by The Washington Post show.
Park Service acting director Jessica Bowron requested permission April 22 to extend a White House contract for environmental assessment work to the arch site, which sits on National Park Service land a mile from the White House. Within an hour of her email White House officials approved the request.
The arch work now joined the multimillion dollar work to resurface and paint the reflecting pools and the ballroom as no-bid work.
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