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'Disgusting Act of Corruption': Trump Sues IRS, Treasury for $10 Billion Over Tax Return Leak
"While Trump is weaponizing taxpayer privacy laws for his own benefit, his Treasury Department is flouting those exact same laws to send tens of thousands of individual tax records to his anti-immigrant henchmen at ICE."
Jan 30, 2026
President Donald Trump has sued the US Treasury Department and Internal Revenue Service for $10 billion over the leak of his tax returns during his first term in the White House, when the president broke with decades of tradition by refusing to voluntarily divulge the records.
The lawsuit—joined by Trump's two eldest sons and his family business, the Trump Organization—was revealed Thursday in a filing with the Miami division of the US District Court for the Southern District of Florida. The suit alleges that the IRS and Treasury Department "caused Plaintiffs reputational and financial harm, public embarrassment, unfairly tarnished their business reputations, portrayed them in a false light, and negatively affected President Donald Trump and the other Plaintiffs' public standing."
Charles Littlejohn, a former IRS contractor who was employed by Booz Allen Hamilton, pleaded guilty in late 2023 to one count of unauthorized disclosure of tax return information and was later sentenced to up to five years in prison.
The US Treasury Department, led by Scott Bessent, announced earlier this week that it was canceling all of its contracts with Booz Allen Hamilton, accusing the company of failing to "implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service."
The leak included the tax records of Trump and other mega-rich Americans, including Amazon founder Jeff Bezos and Tesla CEO Elon Musk. The New York Times, which obtained the records along with ProPublica, reported in 2018 that the returns showed Trump engaged in "outright fraud" and other "dubious" schemes to avoid taxation.
Trump, according to the Times investigation, "paid $750 in federal income taxes in 2016, the year he was elected president, and... he had not paid any income taxes in 10 of the previous 15 years."
US Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee, said in response to the president's lawsuit that “Donald Trump is a cheat and a grifter to his core, and for him to abuse his office in an attempt to steal $10 billion from the American taxpayer is a shameless, disgusting act of corruption."
"While Trump is weaponizing taxpayer privacy laws for his own benefit, his Treasury Department is flouting those exact same laws to send tens of thousands of individual tax records to his anti-immigrant henchmen at ICE," Wyden continued. "It is the height of hypocrisy for Trump to pretend he cares one bit about taxpayer privacy."
Journalist Tim O'Brien, who has covered Trump for decades, called the lawsuit "a flagrant and obvious conflict of interest."
"Trump oversees the IRS. He wants the IRS to pay him a big chunk of change," O'Brien wrote on social media. "He is, and always has been, in it for the money."
The lawsuit isn't the first time Trump has sought a large sum of taxpayer money from a federal agency during his second term in office. Last year, Trump demanded via an administrative claims process that the US Justice Department pay him roughly $230 million in compensation for federal investigations he has faced.
Trump launched his attempt to wring $10 billion in taxpayer money out of the Treasury Department and IRS as he and his allies worked to gut the tax agency, leaving it with inadequate staff and resources to audit wealthy individuals and large corporations. The IRS is currently headed by Frank Bisignano, who was named "chief executive officer" of the agency late last year.
In a letter to Bessent and Bisignano earlier this week, Wyden and a group of fellow Senate Democrats warned that "the administration’s plans for the IRS"—including painful budget cuts—"will shift the burden of audits more heavily onto working Americans while giving rich scofflaws and big businesses a green light to cheat on their taxes."
"The administration has failed to detail any serious plan to avoid that unfair outcome," the senators warned.
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Under Pressure From Trump, Venezuela's Leader Signs Bill Opening Oil Industry to Privatization
"Trump is deploying drone and gunboat diplomacy to coerce Venezuela into serving up its oil resources to Big Oil," said one US watchdog group.
Jan 29, 2026
Venezuelan scholars and a US watchdog group were among those expressing concern on Thursday after Venezuela's government caved to pressure from President Donald Trump and signed a bill opening up the South American country's nationalized oil industry to privatization.
After US forces abducted Venezuelan President Nicolás Maduro and his wife, Cilia Flores—who have both pleaded not guilty to federal narco-terrorism charges—the Trump administration installed the deposed leader's former deputy, Delcy Rodríguez, as acting president.
On Thursday, Venezuela's National Assembly—which is led by the acting president's brother, Jorge Rodríguez—approved and Delcy Rodríguez signed legislation that "promises to give private companies control over the production and sale of oil and allow for independent arbitration of disputes," according to the Associated Press.
As AP reported:
Rodríguez's government expects the changes to serve as assurances for major US oil companies that have so far hesitated about returning to the volatile country. Some of those companies lost investments when the ruling party enacted the existing law two decades ago to favor Venezuela's state-run oil company, Petróleos de Venezuela SA, or PDVSA.
The revised law would modify extraction taxes, setting a royalty cap rate of 30% and allowing the executive branch to set percentages for every project based on capital investment needs, competitiveness, and other factors.
It also removes the mandate for disputes to be settled only in Venezuelan courts, which are controlled by the ruling party. Foreign investors have long viewed the involvement of independent courts as crucial to guard against future expropriation.
Malfred Gerig, a sociologist from Central University of Venezuela, said on social media that the Rodríguez siblings' United Socialist Party of Venezuela (PSUV) "has just approved the most anti-nationalist and damaging oil law since, at least, 1943. The absolute surrender of the state as an oil producer and a sudden conversion of the property rights of the Venezuelan nation into private rights of foreign companies."
Victor Lovera, an economics professor at Andres Bello Catholic University in Caracas, said that "it must be really fucking tough for the Rodríguez siblings to end up as the empire's lapdogs and open up the oil sector, taking us back to the 1970s, before the nationalization of oil. All just to cling to power for a few more months."
Trump—who returned to office a year ago with help from Big Oil's campaign cash—has made clear that his aggressive policy toward Venezuela is focused on the country's petroleum reserves, which critics have blasted as a clear effort to further enrich his donors and himself.
"Trump is deploying drone and gunboat diplomacy to coerce Venezuela into serving up its oil resources to Big Oil," said Robert Weissman, co-president of the US watchdog group Public Citizen, in a Thursday statement.
"Imperfectly, Venezuela has for most of the last century sought to manage its oil and gas reserves to advance its national interest, rather than that of outside investors," he noted. "Brutal sanctions and the threat of still more military action from the Trump regime are now forcing Venezuela to turn from that history and make its oil available to Big Oil at discount rates and to agree that investor disputes should be resolved at corporate-friendly international tribunals."
"This is imperial policy to benefit Big Oil, not Americans—and certainly not Venezuelans," Weissman stressed. "Even still, US oil companies are likely to be reluctant to invest heavily in Venezuela without US government guarantees—a likely next step in Trump’s oil imperialism, unless Congress moves proactively to block it."
Both chambers of the US Congress are narrowly controlled by Trump's Republican Party, and they have so far failed to pass war powers resolutions aimed at stopping more military action in Venezuela and the administration's bombings of boats allegedly smuggling drugs in international waters—all of which some American lawmakers and other experts have argued are illegal.
When Trump's secretary of state and acting national security adviser, Marco Rubio, testified before the Senate Foreign Relations Committee—on which he previously served—on Wednesday, he insisted that the president wasn’t planning for any more military action in Venezuela, but would take it, potentially without congressional authorization, in "self-defense."
Rubio also laid out how the United States intends to continue controlling Venezuelan oil and related profits, telling senators that Venezuela's government will submit periodic budgets, and as long as they comply with preset restrictions, the Trump administration will release funds from a US Treasury blocked account.
After the legislation passed Thursday, the Trump administration began easing sanctions on Venezuela's oil industry, with the Treasury issuing a general license authorizing certain activities involving Venezuelan-origin oil.
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Alberta Separatists Accused of 'Treason' After Secret Meetings With Trump Officials
“To go to a foreign country and to ask for assistance in breaking up Canada, there’s an old-fashioned word for that," said one provincial premier.
Jan 29, 2026
The leader of British Columbia on Thursday excoriated separatists in neighboring Alberta who met secretly on several occasions with officials from the administration of President Donald Trump, whose frequent talk of making Canada the "51st state" has tanked relations with the US' northern neighbor.
The Financial Times reported Wednesday that leaders of the right-wing Alberta Prosperity Project (APP), who want the fossil fuel-rich province to become an independent nation, were welcomed for three meetings with Trump officials in Washington, DC since last April.
APP is reportedly seeking US assistance, including a $500 billion line of credit from the US Treasury Department to help bankroll an independent Alberta, if any potential independence referendum succeeds.
According to the CBC:
Organizers of the Alberta independence movement are collecting signatures in order to trigger a referendum in that province. The pro-independence campaign has been traveling across the province as organizers try to collect nearly 178,000 signatures over the next few months.
"To go to a foreign country and to ask for assistance in breaking up Canada, there's an old-fashioned word for that, and that word is treason," British Columbia Premier David Eby, who leads the center-left BC New Democratic Party, said in Ottawa.
"It is completely inappropriate to seek to weaken Canada, to go and ask for assistance, to break up this country from a foreign power and—with respect—a president who has not been particularly respectful of Canada's sovereignty," Eby continued.
"I think that while we can respect the right of any Canadian to express themselves to vote in a referendum, I think we need to draw the line at people seeking the assistance of foreign countries to break up this beautiful land of ours," he added.
APP co-founder Dennis Modry told the Financial Times Wednesday that the separatist movement is "not treasonous."
“What could be more noble than the pursuit of self-determination, the pursuit of your goals and aspirations, the pursuit of freedom and prosperity?” he asked.
Trump and some of his senior officials have repeatedly expressed their desire to annex Canada, despite polite but vehement Canadian rejection of such a union. Trump's coveting of Canada comes amid his threats to acquire Greenland by any means necessary, his planning for a possible Panama Canal takeover, and his attacks on Venezuela, Iran, Nigeria, and other countries.
Last week, US Treasury Secretary Scott Bessent poured more fuel on the fire by seemingly encouraging Albertan separatism.
"They have great resources. Albertans are a very independent people," Bessent said during a media interview. "Rumor [is] that they may have a referendum on whether they want to stay in Canada or not... People are talking. People want sovereignty. They want what the US has got."
Alberta Premier Danielle Smith of the province's United Conservative Party said Thursday that she "supports a strong and sovereign Alberta within a united Canada," even as critics—including Indigenous leaders—accuse her of making it easier for a pro-independence petition to succeed last year.
Smith said the she expects US officials to "confine their discussion about Alberta's democratic process to Albertans and to Canadians."
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