President Donald Trump, his two eldest sons, and the Trump Organization have voluntarily dismissed a $10 billion lawsuit against the IRS and Treasury Department, according to a filing entered Monday in a Miami federal court. The dismissal was filed “with prejudice,” meaning the case cannot be refiled.
Trump originally filed the suit after a former IRS contractor leaked his confidential tax returns to news outlets during his first term. The contractor subsequently pleaded guilty and was sentenced to federal prison.
A Proposed Compensation Fund
The dismissal drew attention in part because of reports that Trump had been weighing a $1.776 billion taxpayer-funded compensation fund for individuals who claim they were wrongfully targeted by the Biden administration — a group that could include January 6 defendants. Discussions around that proposed fund were reported to be connected to the resolution of the lawsuit.
The case carried an unusual dimension: Trump was seeking financial damages from the very federal agencies he currently oversees as president. With the “with prejudice” designation now on record, that avenue is permanently closed.
The development adds to a broader pattern of legal maneuvering tied to Trump’s return to office. Earlier this year, a Louisiana senator who voted to convict Trump in his second impeachment trial lost his Republican primary, reflecting the continued political weight of Trump-era legal and legislative battles.
No settlement terms were disclosed in the court filing, and it remains unclear whether the proposed compensation fund will move forward independently of the lawsuit’s resolution.