SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
us treasury department
'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.
Keep ReadingShow Less
Trump Admin Sued for Withholding Documents in President's Scheme to 'Pocket Taxpayer Money'
"If senior officials are processing this grift behind closed doors... that is not just bad optics, it is a direct threat to government integrity."
Dec 15, 2025
A democracy advocacy organization is stepping up pressure on the federal government to release more information on President Donald Trump's scheme to receive a $230 million payout from the US Department of Justice.
Democracy Forward on Monday filed a Freedom of Information Act (FOIA) complaint against the DOJ and the US Department of Treasury, alleging that both agencies have so far refused to turn over any records related to what the group describes as Trump's "stunning effort to obtain a $230 million taxpayer-funded payout for investigations into his own misconduct."
The group notes that it has already filed multiple FOIA requests over the last several weeks, and in response neither DOJ or Treasury has "produced a single substantial record or issued a legally required determination."
The complaint asks courts to compel DOJ and Treasury "to conduct searches for any and all responsive records" related to Democracy Forward's past FOIA requests, and also to force the government "to produce, by a date certain, any and all non-exempt responsive records," and to create an index "of any responsive records withheld under a claim of exemption."
Skye Perryman, president and CEO of Democracy Forward, said her organization's lawsuit was a simple demand for government transparency.
"People in America deserve to know whether the Department of Justice is entertaining the president’s request to cut himself a taxpayer-funded $230 million check," Perryman said. "If senior officials are processing this grift behind closed doors—including officials who used to represent him—that is not just bad optics, it is a direct threat to government integrity."
Democracy Forward's complaint stems from an October New York Times report that Trump was lobbying DOJ to fork over hundreds of millions of dollars to him as compensation for the purported hardships he endured throughout the multiple criminal investigations and indictments leveled against him.
Trump was indicted in 2023 on federal charges related to his mishandling of top-secret government documents that he'd stashed in his Mar-a-Lago resort, as well as his efforts to illegally remain in power after losing the 2020 presidential election. Both cases were dropped after Trump won the 2024 presidential election.
When asked about the DOJ payout scheme in the wake of the Times report, Trump insisted he would give any money paid out by the department to charity and asserted that he had been "damaged very greatly" by past criminal probes.
Perryman, however, insisted that Trump was not entitled to enrich himself off taxpayer funds.
"President Trump may think he can invoice people for the consequences of his own actions," she said, "but this country still has laws, and we demand they be enforced.”
Keep ReadingShow Less
Outrage Grows as Trump Admin Quietly Weighs New 'Tax Windfall for the Biggest Corporations'
"Apparently the Trump administration thinks the trillions they spent on tax cuts for the wealthy wasn't enough."
Dec 05, 2025
The Trump administration's quiet effort to deliver billions more in tax breaks to some of the largest companies in the United States drew fresh scrutiny and outrage this week, with Democratic members of Congress warning that a series of obscure regulatory changes could further undermine efforts to rein in corporate tax dodging.
In a letter to the US Treasury Department unveiled Thursday, Sen. Elizabeth Warren (D-Mass.) and Rep. Don Beyer (D-Va.) led a group of lawmakers in denouncing the Trump administration's assault on the corporate alternative minimum tax (CAMT), a Biden-era measure that requires highly profitable US corporations to pay a tax of at least 15% on their book profits—the numbers reported to shareholders.
"The Trump administration has consistently chipped away at CAMT to further corporate interests," the lawmakers wrote, pointing to rules issued in recent months exempting many corporations from the tax.
"But these massive giveaways apparently aren’t enough for billionaire corporations and their lobbyists, which are trying to further undermine CAMT," the lawmakers continued.
The Democratic lawmakers, who were joined by Sen. Bernie Sanders (I-Vt.), specifically warned against an ongoing corporate push for a carveout to a research and experimentation (R&E) tax break included in the Trump-GOP budget law enacted over the summer.
Corporations supported the R&E tax break. But as the Wall Street Journal reported last month, the giveaway is driving some companies' "regular taxes down so far that they are pushed into CAMT."
"This is exactly what CAMT was designed to do, the tax’s defenders say," the Journal noted. "Companies are pressing the Treasury Department for relief, particularly on the way that CAMT limits the deduction for research expenses. The National Association of Manufacturers, the R&D Coalition, and the National Foreign Trade Council sent letters urging the administration to write rules that would be favorable to companies."
The Treasury Department and Internal Revenue Service are reportedly considering the corporate proposal.
Such a change, Democratic lawmakers warned in their new letter, "egregiously circumvents Congress' intent to set a floor on corporations’ tax liabilities regardless of deductions."
But the Trump administration's hostility to the CAMT, cozy relationship with powerful corporations, and willingness to trample existing law have fueled concerns that it will readily bow to industry demands.
"Apparently the Trump administration thinks the trillions they spent on tax cuts for the wealthy wasn't enough now they're planning another huge tax windfall for the biggest corporations in the country," Beyer said Thursday.
In a social media post, Warren wrote that "giant corporations are lobbying Donald Trump for yet another tax handout—this time for research they've ALREADY DONE."
"Give me a break," Warren added. "The last thing American families need is a tax code rigged even more for billionaires and billionaire corporations."
Keep ReadingShow Less
Most Popular