Trump drops $10 billion lawsuit against IRS

Andrew Pantazi

President Trump speaks to reporters in front of an American flag before departing the White House for a trip to China on May 12, 2026, in Washington, D.C. — President Trump speaks to reporters before departing the White House on May 12. Photo: Kevin Dietsch/Getty Images

President Trump, his two eldest sons and the Trump Organization voluntarily dismissed their $10 billion lawsuit against the IRS and Treasury Department on Monday, according to a filing in a Miami federal court.

Why it matters: The dismissal comes as Trump has reportedly considered launching a $1.776 billion taxpayer-funded compensation fund for those who claim they were wrongfully targeted by the Biden administration, including Jan. 6 defendants.

Multiple news outlets reported Trump was considering launching the nearly $1.8 billion fund as part of the talks to resolve his lawsuit.

Catch up quick: Trump sued the IRS after a former contractor leaked his confidential tax returns to The New York Times and ProPublica during his first term. The contractor pled guilty and was sentenced to federal prison.

The filing says the case was dismissed "with prejudice," which means Trump can't refile it. Monday's filing didn't mention if the agencies settled with Trump.
The unusual case featured Trump demanding pay from the very agencies he oversees as president.

Editor's note: This is a breaking news story and will be updated.

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Trump drops $10 billion lawsuit against IRS

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