By Blessing Nweke
President Donald Trump is seeking to voluntarily dismiss a $10 billion lawsuit against the Internal Revenue Service, according to a court filing submitted Monday, ending a closely watched legal battle that experts had described as “unprecedented.”
The lawsuit, filed in January by Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization, accused the IRS and the Treasury Department of failing to prevent a former IRS contractor from leaking the family’s tax returns.
Monday’s filing came shortly after reports emerged that Trump was expected to abandon the case as part of discussions surrounding a proposed $1.7 billion compensation fund for allies who claim they were unfairly targeted by previous administrations. According to ABC News, the fund could include compensation for individuals charged in connection with the Jan. 6, 2021, Capitol riot.
The reported arrangement would reportedly provide limited public oversight, with commissioners overseeing payouts not required to publicly explain award decisions. However, the proposal was not mentioned in Monday’s court documents, and NBC News said it had not independently confirmed the existence of the fund.
The White House referred questions about the filing to the Justice Department. Representatives for the Treasury Department, the IRS and Trump’s legal team did not immediately respond to requests for comment.
Last month, U.S. District Judge Kathleen M. Williams questioned whether the case presented a legitimate legal dispute, given that Trump, as president, oversees the Justice Department defending the federal agencies involved.
Outside legal experts told the court the case raised serious constitutional concerns because a sitting president was seeking damages from agencies under his own control. Trump’s lawyers argued Monday that the court no longer needed to address those concerns because the plaintiffs were voluntarily dismissing the case before the administration formally responded.
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