Trump’s Massive IRS Revenge Plot

President Trump eyes donating $10 billion from his IRS lawsuit to charity, turning a fight against government leaks into a patriotic win for American families.

Story Highlights

Trump filed a $10 billion lawsuit against the IRS on January 29, 2026, for illegal leaks of his tax returns by rogue contractor Charles Littlejohn.
On January 31, aboard Air Force One, Trump said he is considering settling by giving proceeds to charities like the American Cancer Society to avoid personal gain optics.
The suit, filed in Florida by Trump, his sons, and Trump Organization, demands massive taxpayer-funded payout from agencies now under his control.
No settlement reached yet; early stage with Trump appointees holding key power, echoing past conservative demands for government accountability.
Precedent from billionaire Ken Griffin’s similar suit shows hurdles, but Trump’s move upholds privacy rights against deep state overreach.

Lawsuit Targets IRS Leaks from Rogue Contractor

Donald Trump, Donald Trump Jr., Eric Trump, and the Trump Organization filed a $10 billion lawsuit against the IRS and Treasury Department on January 29, 2026, in the Southern District of Florida. The suit alleges violations of the Privacy Act due to unlawful disclosures of confidential tax returns. Charles Littlejohn, a former IRS contractor with Booz Allen Hamilton, stole and leaked the data to The New York Times and ProPublica. Littlejohn pleaded guilty in October 2023 and received a five-year prison sentence. His 2024 deposition confirmed leaks covered all Trump business holdings, harming family enterprises and privacy rights long cherished by conservatives.

Trump Floats Charity Settlement to Sidestep Criticism

On January 31, 2026, President Trump spoke to reporters aboard Air Force One about settlement options. He stated he is considering donating a substantial amount to charities, including the American Cancer Society, because paying himself would not look good. Trump noted, “We’re looking to do something like that,” and added nobody would object if funds went to good causes. This approach counters left-wing attacks on the suit’s optics, framing it as selfless service. The case landed before Judge Kathleen Williams, an Obama appointee, in a Trump-friendly venue. No IRS or Treasury response has emerged as of February 2.

Unprecedented Dynamics: Suing His Own Agencies

Trump now leads the executive branch defendants through his appointees at IRS, Treasury, and DOJ, creating a unique conflict. The $10 billion demand equals two-thirds of the IRS’s $15 billion annual budget request, the third-largest U.S. civil judgment sought. This mirrors an unresolved $230 million claim against DOJ for prior probes. Taxpayers would fund any payout, raising stakes for fiscal conservatives weary of government waste. Trump’s control positions him to resolve the dispute swiftly, prioritizing accountability over bureaucracy. Critics call it outrageous, but supporters see justice against weaponized agencies.

Background Echoes Biden-Era Abuses

The leaks trace to 2020, when Trump, the first modern president not to release returns voluntarily, faced illegal disclosures revealing losses and strategies before the election. Littlejohn also leaked data on other wealthy individuals to ProPublica. Billionaire Ken Griffin sued IRS in 2022 over similar Littlejohn violations, settling in 2024 with an apology but no payout due to unproven harm despite his $51 billion net worth. Trump’s suit demands far more, vindicating Privacy Act protections eroded under past leftist policies that favored transparency over individual liberty.

Left-leaning outlets decry the self-suit as kleptocratic, but Fox Business highlights the leak’s illegality and Trump’s savvy charity pivot. Analyses note legal hurdles like proving IRS employment of Littlejohn and actual harm, given Trump’s net worth growth to $6.5 billion post-leaks. Still, the case chills whistleblower overreach and reinforces conservative values of privacy and limited government intrusion.