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Reason
Reason
Jacob Sullum

A Federal Judge Slams Trump's IRS Lawsuit As a Pretext for Delivering a Phony 'Settlement'

In a scathing decision issued on Monday, a federal judge in Florida ruled that President Donald Trump's January 29 lawsuit against the IRS was nothing more than a pretext for a "settlement agreement" granting him, his family, and his supporters huge favors at the expense of U.S. taxpayers. The plaintiffs and the defendants "worked in tandem and were never actually adverse," writes U.S. District Judge Kathleen Williams, who ordered sanctions against Trump's lawyers. "Because this fact was so obvious and so insurmountable, the Court finds that this matter was brought for an improper purpose—to gain the imprimatur of judicial legitimacy for a 'settlement' that had no viable basis in law or fact."

That "settlement," which Acting Attorney General Todd Blanche announced on May 18, included $1.8 billion in taxpayer money for an "Anti-Weaponization Fund" designed to benefit Trump's friends and followers. As Blanche revealed the next day, the agreement also included protection from liability for tax violations and any other federal offenses that Trump or his relatives may have committed prior to May 19—a provision that could save the president more than $100 million in back taxes, interest, and penalties.

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