Trump Set to Drop Lawsuit Against IRS in Exchange for $1.7 Billion for Allies - Including Capitol Rioters: Report

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Last edited Fri May 15, 2026, 08:40 AM - Edit history (1)

Source: MEDIAite

May 14th, 2026, 8:23 pm


President Donald Trump is set to drop his $10 billion lawsuit against the Internal Revenue Service in exchange for the creation of a fund that will pay up to $1.7 billion to some of his political allies, including people involved with the Jan. 6 Capitol riot, ABC News reported on Thursday night. The president sued the IRS in January after a contractor at the agency leaked his tax returns in 2019 and 2020.

His sons Donald Trump Jr. and Eric Trump, who run the Trump Organization, are also suing. Based on the leaks, the Times reported in 2020 that the billionaire president paid just $750 in income tax in 2016 and in 2017. The leaks came from Charles Littlejohn, a former IRS contractor who worked for Booz Allen. He pleaded guilty to unauthorized disclosures of tax returns and was sentenced in 2024 to the maximum of five years.

On Tuesday, The New York Times reported that the Department of Justice, which is representing the IRS in the case, has been holding internal discussions about settling the lawsuit.

According to ABC News, those discussions have apparently yielded an outcome in which conservatives who claim they were unfairly targeted by the Biden administration will receive compensation. That includes the more than 1,500 people charged or convicted in connection with the Jan. 6 Capitol riot.

Read more: https://www.mediaite.com/media/news/trump-set-to-drop-lawsuit-against-irs-in-exchange-for-1-7-billion-for-allies-including-capitol-rioters-report/

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REFERENCES

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