Trump Moves to Settlement Talks In $10 Billion Lawsuit Against His Own IRS

AP Photo/Alex Brandon

President Donald Trump asked a federal judge to extend a key deadline in his $10 billion lawsuit against his own Internal Revenue Service (IRS) on Friday, indicating settlement talks may soon be underway, as the Justice Department struggles to respond to a case that places government lawyers in a legal bind.

Lawyers for the president requested a 90-day delay to a looming Monday deadline for the Justice Department to file its response, effectively buying time for officials grappling with the unprecedented situation of defending a lawsuit brought by the sitting president against his own administration.

Rather than the Justice Department seeking the extension itself, Trump’s legal team made the request, noting that government lawyers had agreed to the delay.

“The parties are engaging in discussions and need time to work through how to ensure those discussions can take place productively to avoid protracted litigation,” Trump’s lawyers wrote in the filing.

They added that the talks were “designed to resolve this matter”, indicating that settlement discussions could soon be underway. This could potentially require Trump-appointed officials to approve a significant payout to the president and his family.

The case has exposed an unusual conflict of interest inside the Justice Department, whose lawyers would ordinarily defend federal agencies, such as the IRS, but ultimately report to the president, who is bringing the suit.

Behind the scenes, officials in both the Justice Department and the White House have been reportedly weighing options, including delaying proceedings until Trump leaves office or formally outlining the conflict to the court. Any course of action is expected to require Trump’s approval.

The lawsuit alleges the IRS and Treasury Department failed to prevent the leak of Trump’s tax returns between 2018 and 2020 by former contractor Charles Littlejohn, who was later sentenced to five years in prison.

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