President Donald Trump, along with two of his sons and the Trump Organization, filed a notice on Friday, July 31st, 2026, to appeal a federal judge's ruling that questioned the legality of their $10 billion lawsuit against the Internal Revenue Service (IRS).

The lawsuit, originally filed in January, alleges that the IRS and the Treasury Department were responsible for the unauthorized release of Trump's tax documents. This leak led to a report by The New York Times stating that Trump paid only $750 in federal income taxes in 2016 and 2017. A former IRS contractor pleaded guilty in 2023 to stealing Trump's tax records and thousands of others before leaking them.

U.S. District Judge Kathleen Williams, appointed by former President Barack Obama, ruled on July 13 that the lawsuit was filed for an "improper purpose," suggesting Trump aimed to "manipulate the judicial process" rather than to "vindicate rights." Williams also noted that Trump has jurisdiction over the Justice Department, Treasury Department, and the IRS. The ruling further stated that the Justice Department could not portray the settlement with Trump as a judicial agreement.

The case resulted in the Justice Department creating a $1.8 billion "anti-weaponization" fund as part of a settlement agreement, which included a provision that the government would not investigate or seek payment from Trump, his family members, or associated companies on pending tax claims.

A spokesperson for Trump's legal team criticized the IRS, stating the agency "wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization" which was then "illegally released to millions of people."

The appeal comes amid ongoing negotiations between Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina and the Justice Department concerning Todd Blanche's nomination to serve as attorney general. The senators have demanded that the DOJ agree to permanently shut down the "anti-weaponization" fund and narrow the audit protection deal before advancing Blanche's nomination.

The IRS has not yet responded to requests for comment regarding the appeal.

Sources