𝗗𝗿𝗮𝗺𝗮 𝗔𝘀 𝗣𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝘁 𝗗𝗼𝗻𝗮𝗹𝗱 𝗧𝗿𝘂𝗺𝗽 𝗦𝘂𝗲𝘀 𝗛𝗶𝗺𝘀𝗲𝗹𝗳

𝗕𝗬 𝗡𝗜𝗚𝗘𝗥𝗗𝗘𝗟𝗧𝗔 𝗩𝗢𝗜𝗖𝗘,

𝐍𝐢𝐠𝐞𝐫 𝐃𝐞𝐥𝐭𝐚, 𝐍𝐢𝐠𝐞𝐫𝐢𝐚.

United States President Donald Trump is seeking a possible settlement in his controversial $10 billion lawsuit against the Internal Revenue Service (IRS), an agency that he controls. This move has sparked widespread legal and ethical concerns across the United States since all the activities of the sued agency, must always be authorized under his watch. 

According to new court filings submitted on Friday, lawyers representing Trump asked a federal court to pause proceedings in the case for 90 days to allow discussions aimed at resolving the matter outside prolonged litigation.

In the filing, Trump’s legal team argued that the temporary suspension would help both parties explore options that could “narrow or resolve the issues efficiently” while promoting judicial economy.

The lawsuit, originally filed in January 2026, stems from the leaking of Trump’s confidential tax records by former IRS contractor Charles “Chaz” Littlejohn.

Littlejohn had been rehired in 2017 through consulting firm Booz Allen Hamilton and later accessed and copied Trump’s tax documents while working with IRS systems.

The leaked records became the basis for several high-profile media investigations. In 2020, The New York Times published reports revealing that Trump paid no federal income taxes in 10 out of 15 previous years, while nonprofit newsroom ProPublica also released stories highlighting details from the documents.

Littlejohn was eventually convicted and sentenced to five years in prison in 2024 for illegally disclosing taxpayer information.

Trump’s lawsuit claims that the leaks caused “significant and irreparable harm” to him, his businesses, and his sons, Eric Trump and Donald Trump Jr..

The suit accuses the IRS and the US Treasury Department of damaging Trump’s reputation, embarrassing his businesses, and negatively affecting his public image.

However, legal experts and government watchdog groups have questioned both the legal basis of the case and the ethics surrounding any potential settlement.

Critics argue that Trump is effectively negotiating with agencies that operate under his own administration, since both the Justice Department and Treasury Department are part of the executive branch under presidential authority.

Several legal analysts also believe the lawsuit contains weaknesses that would normally prompt dismissal.

Among the concerns raised is Trump’s calculation of damages. The lawsuit reportedly bases the $10 billion figure on the number of media references to the leaked tax records, although privacy laws typically calculate damages according to the number of unauthorised disclosures made by government employees.

Questions have also emerged over whether Littlejohn qualifies as a government employee, since he worked as an outside contractor.

Another issue involves the statute of limitations. Trump’s legal team argues that he only became fully aware of the violations in January 2024, but critics point to Trump’s own social media posts from 2020 in which he complained that his tax records had been “illegally obtained”.

Government accountability organisation Democracy Forward has already filed an amicus brief urging the court to block any improper settlement process.

The group warned that the president “controls both sides of the litigation,” creating what it described as the possibility of “collusive litigation tactics”.

Trump has publicly acknowledged that receiving such a settlement while serving as president could attract criticism, although he claimed any proceeds would be donated to charity.

Legal scholars, however, say even that arrangement could raise constitutional questions under the Emoluments Clause, which restricts presidents from profiting beyond their official salary while in office.

The IRS lawsuit is not the only dispute Trump is attempting to resolve with federal agencies.

Reports indicate Trump is also pursuing compensation claims connected to previous FBI investigations, including the probe into alleged Russian interference in the 2016 election and the FBI search of his Mar-a-Lago estate over classified documents.

Combined, those additional claims are reportedly valued at approximately $230 million.