Trump v. IRS

President Trump, along with two of his sons and the Trump Organization, filed a lawsuit in 2026 against the IRS and the Treasury Department seeking over $10 billion in damages from the government for the unauthorized disclosure of their tax information more than five years ago. By statute, the Attorney General and the Department of Justice (DOJ) are responsible for defending the government against President Trump’s claim for damages, even through they are part of the Trump administration and accountable to President Trump.

Public Citizen and Citizens for Responsibility and Ethics in Washington (CREW) filed an amicus brief explaining that President Trump’s lawsuit raised significant constitutional and ethical concerns due to the President’s appearance on both sides of the litigation. The brief explained that the constitutional separation of executive and judicial powers calls into question whether a sitting president may prosecute a suit for damages in federal court. The brief also warned that DOJ could not zealously defend federal agencies against the President’s claims so long as Mr. Trump was president and DOJ remained accountable to him, as well as that a transfer of public funds to President Trump would violate the domestic Emoluments Clause. The brief urged the court to stay the litigation until the end of President Trump’s term and to enjoin the parties from settling the litigation through a monetary payment to President Trump.

The court expressed strong concerns along the lines of our brief. Because the government entered an appearance, though, Trump voluntarily dismissed the case. The same day, DOJ announced a “settlement” creating a $1.8 billion fund to compensate people who claimed to have been unfairly targeted by the government.