President Donald Trump’s legal team says discussions are underway to possibly settle his massive lawsuit against the IRS.
Lawyers for Donald Trump told a court they are in talks with the United States Department of Justice to resolve a $10 billion lawsuit filed against the Internal Revenue Service and the Treasury Department.
According to a Friday court filing, Trump’s attorneys requested a 90-day extension to allow both sides hold discussions and avoid a lengthy legal battle.
Trump, along with his sons Eric Trump and Donald Trump Jr., plus the Trump Organization, filed the lawsuit in January. They claim unauthorized disclosure of confidential tax records caused financial harm, reputational damage and public embarrassment.
The case stems from the leak of Trump’s tax information in 2019 and 2020. A government contractor later pleaded guilty in 2023 to stealing tax data belonging to Trump and other wealthy Americans before passing it to media outlets.
Trump’s lawsuit argues the IRS and Treasury Department failed to maintain proper security controls, employee screening and monitoring systems to protect sensitive taxpayer information.
The Department of Justice had been facing a deadline to formally respond to the case this month, but both sides agreed to seek more time.
The lawsuit has also drawn criticism. A group of former government officials filed an amicus brief raising ethical concerns, arguing that a sitting president suing agencies he oversees creates an unusual legal conflict.
If no settlement is reached, the case could become one of the most closely watched privacy and government accountability lawsuits in recent US history.
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