Trump Expected To Drop IRS Suit In Exchange For MAGA Slush Fund

“The arrangement would be an unprecedented use of taxpayer dollars with little oversight,” ABC noted.“Under the terms of the potential settlement agreement, President Trump would have the authority to remove members of the commission running the fund without cause, and the commission would be under no obligation to disclose its procedures or decision-making process for awarding more than a billion dollars.”

ABC's story came on the heels of reports earlier this week revealing internal Justice Department discussions on settling Trump's lawsuit, which he filed in late January. Last month, a federal judge questioned the constitutionality of Trump's suit, noting that“he is the sitting president and his named adversaries are entities whose decisions are subject to his direction.”

“Real story: Judge was about to throw out the case because Trump controls both parties,” Rep. Dan Goldman (D-NY) wrote late Thursday.“Before it's dismissed, Trump tells both parties to reach a 'settlement.' Settlement shields Trump from any future audit and creates a secret slush fund that can dole out money to anyone with no transparency.”

“Mind-boggling corruption,” Goldman added.

The case centers on the IRS's leak of Trump's tax returns during his first term, which occurred after he broke decades of precedent by refusing to release them. The lawsuit alleges that the IRS failed to prevent former IRS contractor Charles Littlejohn from unlawfully disclosing tax information to media outlets, for which he pleaded guilty in 2024.

The leaks, reported by The New York Times and ProPublica, revealed that Trump had engaged in what was described as“outright fraud” and other“dubious” schemes to avoid taxation, and that he paid no federal income taxes in many of the years leading up to his presidency.

The Trumps are seeking a payout of at least $10 billion from the IRS, which is currently being headed by Trump's handpicked Social Security Administration head, Frank J. Bisignano, who reports to Treasury Secretary Scott Bessent.

This creates an extraordinary legal situation widely described as a blatant conflict of interest, since Trump is suing an IRS that he effectively controls, which is being represented by a DOJ he also effectively controls.

For a case to be valid, however, the parties must demonstrate that they are actually on opposite sides; otherwise, the case can be thrown out of court.

US District Judge Kathleen M. Williams of the Southern District of Florida, who is overseeing the case, questioned its constitutionality last month and required the parties to file briefs by May 20 demonstrating whether there is an actual conflict between them.

According to the Times, however, if the DOJ decided to settle the case with Trump before that date, there'd be little Williams could do to stop it.

Not only could Trump walk away with a payout of more than a billion dollars but, according to the Times, the White House and DOJ have also discussed a deal for the IRS to drop all audits into Trump, his family, and his businesses.

Presidents and vice presidents are required under IRS to undergo audits of their annual tax returns, and a 2024 Times report found that if Trump failed an audit, it could cost him more than $100 million.

Trump's presidency has been defined by his and his family's profiting from their positions of influence. According to a live tracker from the Center for American Progress, Trump and his family have used the White House to rake in more than $2.6 billion worth of cash and gifts.

In addition to about $1.5 billion from their cryptocurrency ventures, which they've used the White House to promote, they have received direct gifts – like a $400 million luxury jet from the government of Qatar – and legal cash settlements from media and tech companies worth over $90 million. On top of the IRS lawsuit, Trump has also demanded that the DOJ pay him $230 million over past criminal investigations into him.