President Donald Trump on Monday moved to withdraw his $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns, after reports that a resolution of the case was close at hand.
The disclosure was made in a filing in federal court in Florida, where the lawsuit was filed. The move came after ABC News reported last week that Trump was prepared to drop his lawsuit as part of a deal that would create a $1.7 billion fund to pay allies of the president who believe they were wrongly investigated and prosecuted.
The court filing did not mention terms of any potential deal. The lawsuit, initially filed in 2022, alleged that the IRS violated Trump's privacy by leaking his tax returns to the media. The case has been closely watched as a test of the limits of presidential power and privacy rights.
Trump's decision to withdraw the lawsuit marks a significant shift in his legal strategy. The president has long maintained that the leak was politically motivated and that he was entitled to damages. However, the prospect of a deal that would benefit his allies may have influenced his decision.
Legal experts say the withdrawal could be seen as an admission that the case was weak, but others note that it may simply be a pragmatic move to avoid further litigation and focus on other priorities. The IRS has not commented on the filing.
