BREAKING: Trump Moves to Drop $10B Lawsuit Against IRS Over Leaked Tax Returns

(AP Photo/Mark Schiefelbein)

President Donald Trump moved Monday to dismiss his $10 billion lawsuit against the Internal Revenue Service (IRS) over the leak of his tax returns by a government contractor.

A filing in federal court in Florida, where the case was brought last year, confirmed Trump’s bid to withdraw the lawsuit, according to the Associated Press. The filing did not disclose whether any agreement had been reached with the IRS or outline any terms of a potential settlement.

The news agency noted the move comes days after ABC News reported that Trump was prepared to abandon the lawsuit as part of a deal establishing a $1.7 billion fund for associates who believe they were wrongly investigated or prosecuted during the Biden administration.

The lawsuit alleged the IRS and Treasury Department “had a duty to safeguard and protect” the records from public disclosure but “failed to take such mandatory precautions” after a contractor leaked the information to the press.

The contractor Charles Littlejohn was sentenced to five years in prison after pleading guilty to disclosing the returns.

The New York Times published details from the records in September 2020, reporting that Trump paid just $750 in federal income tax in the year he won the presidency and no income taxes in 10 of the previous 15 years. Trump later released the returns himself in 2022.

Trump has repeatedly argued the justice system was weaponised against him and his allies following investigations tied to the 2020 election and classified documents retained at Mar-a-Lago.

This is a developing story and will be updated.

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