Critics Warn of "Grift" in Potential DOJ Settlement of Trump's $10 Billion IRS Lawsuit

"The Department of Justice (DOJ) is reportedly holding internal discussions to determine whether to settle a lawsuit filed by President Donald Trump and his family members against the Internal Revenue Service (IRS) - an outcome that would represent a major conflict of interest, given that Trump oversees the departments and agencies involved."

"Such a settlement could allow Trump and his family to personally receive millions of dollars in taxpayer funds. Trump, his two sons Eric and Donald Jr., and the Trump Organization filed the lawsuit in January, alleging the IRS didn't do enough to prevent the release of their tax records years ago. The family is seeking a $10 billion monetary judgment from the federal government."

"Due to the IRS being under the purview of the executive branch, and thus the president himself, federal Judge Kathleen Williams, who is overseeing the case, has taken extra steps designed to determine whether the Trumps and the IRS are legitimately on opposing sides. Both parties must file briefs to Williams's court before May 20."

"However, if a legal settlement is reached before the case proceeds, Williams would be mostly powerless to prevent the Trumps from receiving whatever amount is agreed upon. The DOJ - which, despite acting independently in the past, has followed through on direct orders from Trump, including pursuing criminal cases against his political opponents - could determine that a settlement is warranted, giving Trump all or some of the monetary judgment he is seeking."

Trump and his family sued the IRS, alleging the agency failed to prevent the release of their tax records years earlier. The lawsuit, filed in January, seeks a $10 billion monetary judgment from the federal government. The IRS falls under the executive branch, creating a conflict because Trump oversees the departments and agencies involved. Judge Kathleen Williams has taken steps to assess whether the Trumps and the IRS are truly adversarial. Both sides must submit briefs before May 20. If a settlement occurs before the case proceeds, the judge would have limited ability to stop the Trumps from receiving the agreed amount. The DOJ is reportedly considering whether to settle, which could result in Trump receiving all or part of the requested judgment.

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