Potential Settlement of Unprecedented Trump Lawsuit Puts IRS Employees at Risk
WASHINGTON, D.C. – President Trump’s Justice Department is reportedly considering settling a lawsuit that the President and his family have brought seeking over $10 billion from the IRS for the unauthorized disclosure of their tax returns in 2020. News reports indicate Trump is seeking not only to be paid unknown amounts but also requesting that the IRS terminate audits of his tax returns. Public Citizen wrote a letter explaining that any settlement of Trump’s lawsuit would be inappropriate and that IRS officials are obligated under law to report to the agency Inspector General any request by the President to terminate an audit.
The reported settlement both raises “significant constitutional, legal, and ethical issues,” the letter explains, and presents a “legal risk to the IRS officers and employees who may be asked to terminate audits in response to a settlement of President Trump’s claims.” Their failure to report such a request to the IRS would be a criminal offense under 26 U.S.C. §7217 and subject them to potential future prosecution.
The letter, from Public Citizen co-presidents Lisa Gilbert and Robert Weissman, asks Acting Attorney General Todd Blanche, IRS head Frank Bisignano, and Acting Inspector General Heather Hill to advise IRS employees of their reporting obligations under the law.
“There may be no more brazen example of Donald Trump’s grift and authoritarianism than his lawsuit against his own IRS – for conduct that occurred while he was president – preposterously seeking $10 billion in compensation,” said Public Citizen co-president Robert Weissman. “With a court doubting whether it can hear the suit, Trump is pushing for a settlement outside of court review.”
“News reports suggest Trump is seeking to terminate audits of his family businesses, yet another attempted escape from accountability,” said Public Citizen co-president Lisa Gilbert. “This request is unethical on its face and puts IRS officials in legal jeopardy, because of their duty to report such an illegal request. The least the top officials at DOJ and the IRS can do is notify IRS employees of their obligations under the law.”
Read the full letter here.