Trump IRS lawsuit appeal targets ruling over $10B tax records case
Trump has moved to appeal a judge’s ruling that said his $10 billion IRS lawsuit was filed for an improper purpose.
By Sal Moretti · Money Reporter
3 min read
The Trump IRS lawsuit appeal began Friday when President Donald Trump filed notice that he will challenge a federal judge’s ruling faulting his $10 billion case against the IRS, NBC News reported.
The July 13 ruling by U.S. District Judge Kathleen Williams said the lawsuit, brought by Trump, two of his sons and the Trump Organization, served an “improper purpose.” Williams wrote that the case was meant to “manipulate the judicial process” rather than to “vindicate rights.”
The IRS did not immediately respond to NBC News’ request for comment on the planned appeal.
What is Trump's IRS lawsuit appeal about?
The appeal centers on Trump’s lawsuit against the IRS and the Treasury Department over the release of his tax records. Trump sued in January, alleging the agency was responsible for an unauthorized disclosure that led to a New York Times report saying he paid $750 in federal income taxes in both 2016 and 2017, according to NBC News.
A spokesperson for Trump’s legal team said Friday that the IRS “wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization” to media outlets, and that the information was later “illegally released to millions of people.”
A former IRS contractor pleaded guilty in 2023 to stealing Trump’s tax records and thousands of other people’s records in 2019 and 2020 before leaking them, according to NBC News. He is serving a five-year prison sentence.
Williams, who was appointed by President Barack Obama, also noted in her ruling that Trump has authority over the Justice Department, Treasury Department and IRS.
How the settlement became a political fight
The lawsuit led to a settlement structure that included the Justice Department creating a $1.8 billion “anti-weaponization” fund, NBC News reported. The arrangement also included a government agreement not to investigate or seek payment from Trump, his family members and his companies on pending tax claims.
Williams said in her ruling that the Justice Department could not present the settlement with Trump as a judicial agreement. She also ordered sanctions against acting Attorney General Todd Blanche, who previously represented Trump personally, and Associate Attorney General Stanley Woodward.
The judge separately asked the Florida Bar Association to consider whether disciplinary action was warranted against one of Trump’s attorneys, Alejandro Brito.
The settlement has now fed a standoff on Capitol Hill over Blanche’s nomination for attorney general, according to NBC News. Republican Sens. John Cornyn of Texas and Thom Tillis of North Carolina have demanded that the Justice Department agree to permanently close the anti-weaponization fund and narrow the audit-protection arrangement before they back moving Blanche’s nomination ahead.
Trump acknowledged Friday morning that the fund is dead, telling reporters, “I wish it weren’t.” NBC News reported that he did not answer when asked whether he would agree to limit the tax-deal terms covering himself, his family and his company.
This story draws on original reporting from NBC News.