On Monday, July 13th, 2026, a US judge voided a settlement between former President Donald Trump, his family, and the Internal Revenue Service (IRS) that had granted them broad protections from tax audits. The lawsuit, originally filed by Trump, his two eldest sons, and the Trump Organisation, sought $10 billion over the disclosure of confidential IRS records leaked by a former agency contractor to news organizations.

The case concluded in May with a contentious agreement that not only shielded Trump and his affiliates from existing tax examinations and claims but also established a $1.8 billion taxpayer-funded program to compensate individuals alleging politically motivated government investigations. This compensation program was later abandoned amid criticism labeling it a "slush fund for criminals."

District Judge Kathleen Williams ruled there was never a genuine legal dispute between Trump and the IRS, noting that as president, Trump effectively controlled the IRS and the Treasury Department. She stated, "And because this fact was so obvious and so insurmountable, the court finds that this matter was brought for an improper purpose -- to gain the imprimatur of judicial legitimacy for a 'settlement' that had no viable basis in law or fact."

Judge Williams also accused the government of neglecting its duty to defend the public interest, asserting that Justice Department officials disregarded policies and pursued objectives exceeding, and in some cases violating, their legal authority. She ordered that a copy of her ruling be sent to the State Bar of New York and the District of Columbia Bar, where acting Attorney General Todd Blanche and Associate Attorney General Stanley Woodward are members.

A spokesman for Trump's private legal team responded by saying the president would continue to "hold those who wrong America and Americans accountable," according to CNN.

Sources