A sitting president is suing his own government agencies to seek ten billion dollars of taxpayer money, allegedly to give to charity.
Story Overview
- President Trump has filed a $10 billion lawsuit against the IRS and Treasury Department over leaked 2020 tax returns.
- The suit targets agencies that Trump himself oversees as chief executive, creating an unprecedented intra-administration conflict.
- Trump now plans to settle down by donating his profits to charities like the American Cancer Society to deflect criticism.
- Former IRS contractor Charles Littlejohn is serving a five-year prison sentence for illegally accessing and disclosing confidential records.
- Critics call the trial brazen corruption while supporters portray it as justification for privacy violations.
When the president sues himself
The lawsuit filed Jan. 29, 2026, in the Southern District of Florida places Donald Trump, his sons Donald Jr. and Eric, and the Trump Organization as plaintiffs against the federal agencies Trump commands as president. The IRS and Treasury Department are accused of failing to prevent Charles Littlejohn, an entrepreneur, from illegally accessing Trump’s tax returns and disclosing them to the New York Times in 2020. Littlejohn pleaded guilty in 2023, was sentenced to five years in prison and remains incarcerated. The suit seeks $10 billion for privacy violations and alleged harm to the Trump family’s business interests.
The charitable pivot that changes everything
Aboard Air Force One on Jan. 31, Trump told reporters he was “thinking” about settling the lawsuit by donating the proceeds to charity. He specifically mentioned the American Cancer Society, adding that “no one would care because the money will go to really good charities.” This pivot addresses an obvious optical problem: A billionaire president extracting billions from taxpayers seems indefensible, but the same president funneling money from government settlements to cancer research seems almost noble. The timing of this announcement, just two days after filing, suggests a cautious strategy regarding public perception.
‘WE’RE THINKING ABOUT…’: President Trump says he plans to settle his $10 billion lawsuit against the IRS and donate the money to numerous charities.
Trump filed a lawsuit last week, accusing the IRS of illegally disclosing his confidential tax returns in a… pic.twitter.com/42svjxKYth
– Fox News (@FoxNews) February 1, 2026
The rogue entrepreneur who started it all
Charles Littlejohn’s actions created this legal mess. As an IRS contractor with a security clearance, he accessed confidential tax information about Trump and other wealthy Americans and then leaked it to media outlets including the New York Times and ProPublica. The Times published articles in 2020 revealing Trump’s financial losses and tax avoidance strategies during his first term. Littlejohn’s 2024 testimony details how he disclosed information about all of Trump’s business involvements. His conviction established clear criminal acts, giving allegations of invasion of Trump’s privacy a factual basis, regardless of the astronomical amount attached.
An unprecedented constitutional territory
No president in American history has sued the executive agencies under his control to seek billions of dollars in public funds. The Justice Department, run by Trump appointees, finds itself in the awkward position of potentially defending the IRS and Treasury against their own boss. This mirrors the previous $230 million administrative claim filed by Trump against the DOJ for prior investigations. The choice of venue in Florida suggests seeking favorable treatment, although the designated judge will be appointed by Obama. Constitutionalists have no road map for how courts should treat a chief executive demanding massive payments to the agencies he runs.
The debate between confidentiality and transparency
Trump broke modern presidential norms by refusing to release tax returns, becoming the first recent president to withhold them. His supporters say this makes Littlejohn’s escape a serious crime against privacy deserving of compensation. Critics counter that presidential financial transparency serves the public interest, and Trump’s claims of victimhood ring hollow given his administration’s own data practices. Sen. Ron Wyden called the lawsuit “brazen corruption” and noted the irony of Trump demanding privacy protections while his administration shares sensitive information about immigrants and others. This philosophical divide between elite privacy rights and public accountability will not be easy to resolve.
Track the money that doesn’t exist yet
The $10 billion figure appears disconnected from any damage calculation methodology disclosed in public documents. Taxpayers would foot the bill for any settlement or judgment, effectively making it a transfer from public coffers to Trump family interests, even if it was ultimately redirected to charity. The charitable giving strategy, if implemented, would allow Trump to claim the moral high ground while continuing to extract government funds based on his victimization. No settlement has been formalized and the case is still in its early stages. Whether federal agencies will settle their differences with their own bosses, how courts will handle constitutional conflicts and whether charities will accept potentially controversial donations remain open questions.
Sources:
Trump sues IRS and Treasury Department for leaking tax records, demands $10 billion
Trump plans to settle massive $10 billion lawsuit against IRS and donate proceeds to charity
Wyden ridicules Trump’s $10 billion lawsuit against IRS and Treasury
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