Donald Trump is appealing a federal judge's order that found his $10 billion lawsuit against the IRS was filed in bad faith to secure a settlement. The deal with the DOJ included immunity from IRS audits and a controversial $1.776 billion "lawfare" fund, which has since been scrapped. The fallout has stalled the Senate confirmation of Trump's attorney general nominee, Todd Blanche, and led to sanctions against Trump's lawyers.
Trump settlement appeal
- ▪The appeal was filed on July 31, 2026, and is directed to the U.S. Court of Appeals for the 11th Circuit
- ▪Judge Kathleen Williams ruled on July 13, 2026, that Donald Trump's lawsuit against the IRS was brought to provide "judicial legitimacy" for a settlement with no viable basis in law or fact.
- ▪Donald Trump is appealing a federal judge's order that found he filed a $10 billion lawsuit against the IRS in bad faith
Lawfare fund controversy
- ▪The $1.776 billion "lawfare" fund has been scrapped, a development Donald Trump lamented
- ▪A settlement with the Department of Justice created a $1.776 billion "lawfare" fund to pay people who claimed to be victims of government lawfare
- ▪In Senate testimony, attorney general nominee Todd Blanche did not rule out that the fund could pay people charged in the Jan. 6, 2021, Capitol riot
Blanche nomination holdup
- ▪The Senate confirmation of Todd Blanche, Donald Trump's nominee for U.S. attorney general, is being held up by a handful of Republican senators
- ▪The senators, including Thom Tillis of North Carolina, are seeking written confirmation that the controversial "lawfare" fund is defunct
Judge Williams sanctions
- ▪The judge's order prohibited the parties from referring to the "settlement agreement" as evidence that a valid settlement had been reached
- ▪Judge Williams referred one of Trump's attorneys, Alejandro Brito, to the Florida Bar for potential disciplinary action
- ▪The judge also barred another lawyer, Daniel Epstein, from appearing in the southern Florida federal court for one year
IRS audit immunity provision
- ▪The settlement included a provision granting Donald Trump, his family, and related entities immunity from IRS enforcement actions on past federal tax returns
- ▪Judge Williams wrote that the lawsuit was improperly used to gain "exemption from audits and other investigations."
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