WASHINGTON — President Donald Trump's administration has added terms to a settlement that effectively halts any ongoing IRS audits of the president, his family, and related businesses. The new document, filed Tuesday, states the government is "FOREVER BARRED" from pursuing tax examinations or related reviews for returns filed before this week.
Settlement Details
The settlement stems from a lawsuit Trump filed in January over the 2020 leak of his tax information. The Justice Department created a $1.8 billion "Anti-Weaponization Fund" as part of the deal. Acting Attorney General Todd Blanche signed the new terms on May 19, though they were not disclosed during his Tuesday testimony before Congress.
The Anti-Weaponization Fund is intended to compensate those allegedly harmed by political "lawfare" during the Biden administration. When asked if it would cover Jan. 6 rioters, Blanche said anyone could apply.
Political Reactions
Senate Majority Leader John Thune expressed reservations, saying the administration must answer questions about the expansion. Democrats strongly criticized the move. Sen. Ron Wyden called it "heinously corrupt" and a violation of laws prohibiting interference in IRS audits. He vowed to fight the settlement, labeling the directive illegal.
The IRS traditionally audits presidential taxes annually. During Trump's first term, Democrats found the IRS failed to complete his audit, which Trump cited as reason for not releasing his returns.
