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According to a one-page agreement signed by Acting Attorney General Todd Blanche, the IRS is allegedly “FOREVER BARRED and PRECLUDED” from pursuing claims, examinations or enforcement actions connected to Trump and family. All you need to know.
US President Donald Trump and his family on Tuesday (May 19) received a hush-hush blanket escape from any tax audits or penalties for unpaid taxes. The Trump family received this tax break as part of the settlement after Trump withdrew his $10 billion lawsuit against the IRS. The one-page document bearing the signature of Acting Attorney General Todd Blanche was posted one day after the US Justice Department revealed the creation of a $1.776 billion "anti-weaponisation" fund, which critics warned could be used to pay out Trump allies using taxpayer dollars.
The vaguely worded document posted on the DOJ website states that the IRS is "FOREVER BARRED and PRECLUDED" from pursuing claims, examinations, or enforcement actions tied to Trump and related entities for tax filings submitted before the agreement’s effective date.
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The settlement itself stems from Trump’s earlier $10 billion lawsuit against the federal government after confidential tax documents were leaked by a contractor in 2019 and 2020.
But what makes the situation politically explosive is that Trump, while serving as president, was effectively suing the very government his administration controls. That unusual dynamic has fuelled accusations of conflict of interest.
Democrats call it ‘corruption in plain sight’
Democratic lawmakers reacted furiously to the Trump tax break, with Senator Ron Wyden calling the agreement "another heinously corrupt act by the most corrupt administration in history," arguing that it was a violation of "law that prohibits interference by executive branch officials in IRS audits".
Congressman Richard Neal accused Trump of turning government into a "personal protection racket," claiming taxpayers were now funding legal settlements "while steering $1.8 billion in taxpayer dollars toward his friends, cronies, and Trump-affiliated companies," and calling the act "self-dealing at its most grotesque".