A new report from The New York Times claims that President Donald Trump is preparing to drop his $10 billion lawsuit against the Internal Revenue Service. The move is part of a deal that would create a $1.7 billion fund to compensate his political allies, including people connected to the January 6 Capitol riot.
The original lawsuit, which also includes Donald Trump Jr. and Eric Trump, comes from a 2019 and 2020 leak of tax returns. The documents were leaked by Charles Littlejohn, a former IRS contractor who worked for Booz Allen. Littlejohn pleaded guilty to unauthorized disclosure and was sentenced to five years in prison in 2024. The leaks led to reports that Trump paid only $750 in federal income tax in 2016 and 2017.
