Sat Jan 31 07:10:00 UTC 2026: ### Trump Sues IRS and Treasury for $10 Billion Over Tax Leak

The Story: Former President Donald Trump, along with his sons Donald Trump Jr. and Eric Trump, and the Trump Organization, have filed a lawsuit against the Internal Revenue Service (IRS) and the U.S. Treasury Department, seeking $10 billion in damages. The lawsuit alleges that the IRS and Treasury failed to prevent the leak of their confidential tax information by former IRS employee Charles “Chaz” Littlejohn. The case has been assigned to Judge Kathleen Williams, appointed by former President Barack Obama.

The complaint asserts that Littlejohn, who is currently serving a five-year prison sentence for leaking tax records to The New York Times and ProPublica, admitted in a 2024 deposition to disclosing “Trump information [that] included all businesses that he had owned” to ProPublica. The lawsuit claims that ProPublica’s reporting falsely accused the records of containing “versions of fraud.” The plaintiffs argue that they have suffered reputational and financial harm as a result of the leaks.

Key Points:

  • Donald Trump, his sons, and the Trump Organization are suing the IRS and Treasury for $10 billion.
  • The lawsuit alleges that the IRS failed to prevent the leak of confidential tax information by Charles “Chaz” Littlejohn.
  • Littlejohn leaked tax records to The New York Times and ProPublica, and is currently serving a five-year prison sentence.
  • The plaintiffs claim that ProPublica’s reporting falsely accused them of fraud based on the leaked information.
  • The case has been assigned to Judge Kathleen Williams, an appointee of former President Barack Obama.
  • The suit was filed three days after Treasury Secretary Scott Bessent said he had canceled all of his department’s contracts with the consulting firm Booz Allen Hamilton in connection with Littlejohn.

Key Takeaways:

  • The lawsuit represents a significant escalation in the ongoing controversy surrounding the leak of Trump’s tax records.
  • The $10 billion damages claim is substantial and will likely face significant legal challenges.
  • The assignment of the case to a judge appointed by Barack Obama could introduce political dimensions to the legal proceedings.
  • The lawsuit highlights the potential for politically motivated leaks within government agencies and the importance of protecting confidential taxpayer information.
  • The legal actions taken after Secretary Bessent’s cancellation of contracts with Booz Allen Hamilton indicate the serious nature of the Treasury’s concern about the security breach caused by Littlejohn.

Impact Analysis:

The lawsuit has several potential long-term implications:

  • Legal Precedent: The outcome could set a precedent for future cases involving the leak of confidential tax information and the liability of government agencies.
  • Political Ramifications: The case is likely to further polarize political opinions, particularly given Trump’s past criticisms of government agencies and his political rivals.
  • IRS Scrutiny: The lawsuit may lead to increased scrutiny of the IRS’s internal security protocols and procedures for protecting taxpayer information.
  • Public Trust: The leak and subsequent lawsuit could erode public trust in the IRS and the government’s ability to safeguard sensitive information.
  • Future Political Behavior: The filing three days after the contract cancellations by Secretary Bessent suggests a coordinated response and a continuation of Trump’s pattern of aggressively pursuing legal remedies against perceived wrongs.

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