Trump Negotiates with IRS Over $10 Billion Tax Leak Lawsuit Amid Collusion Concerns
April 17, 2026
President Trump’s lawyers are negotiating with the IRS to resolve a $10 billion lawsuit over the alleged leak of his and the Trump Organization’s tax information to news outlets from 2018 to 2020, with the case filed in federal court in Florida.
The lawsuit accuses reputational and financial harm, unfair portrayal, and negative impact on Trump and other plaintiffs including his sons Donald Trump Jr. and Eric Trump.
A 90-day pause is requested to promote judicial economy and allow the parties to narrow or resolve the issues without prejudice to either side.
Ethics watchdogs have filed amicus briefs questioning potential collusion or conflicts of interest since Trump controls both sides of the litigation and asking whether the DOJ can zealously defend the public fisc.
The case raises broader questions about government-versus-president involvement and potential collusion concerns, highlighted by Democracy Forward and others.
An amicus brief from former government officials criticized the case as extraordinary due to the president controlling both sides, warning about collusive litigation and risks to taxpayers and privacy protections.
The suit is brought personally by Trump, not in his official capacity, with concerns about conflict of interest since he oversaw the agencies being sued, and potential monetary settlements could involve Trump and his family benefiting from federal payments.
DOJ lawyers are evaluating conflicts of interest as Trump sues the federal government, with the DOJ representing the IRS and Treasury named as a defendant.
Separately, prosecutors charged Littlejohn in 2023 for improper disclosures; he pled guilty and received a five-year sentence.
The discussions follow controversy from a separate settlement in which the DOJ paid more than $1 million to Michael Flynn to resolve his wrongful-prosecution case.
Booz Allen faces multiple lawsuits related to the leak, and Bloomberg Law operates under Bloomberg-controlled entities, with Michael Bloomberg among those affected.
Trump is represented by Brito PLLC in the case docketed as Trump et al v. Internal Revenue Service, Southern District of Florida, No. 1:26-cv-20609.
Summary based on 13 sources
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Sources

AP News • Apr 17, 2026
Trump's lawyers in talks with IRS to resolve his $10B lawsuit | AP News
Bloomberg Tax • Apr 17, 2026
Trump, IRS Ask for Pause in $10 Billion Suit Over Tax Data Leak
