Judge voids Donald Trump's tax immunity deal with IRS

A federal judge in Florida has nullified a tax immunity deal struck between former President Donald Trump and the U.S. tax authority. The agreement, which would have provided retroactive immunity for Trump, his family, and businesses, was part of a settlement to drop a $10 billion lawsuit Trump filed against the IRS.

Trump had sued the IRS and sought damages, alleging his tax returns were leaked during his presidency. In exchange for withdrawing this suit, the Justice Department created a nearly $1.8 billion "anti-instrumentalization" fund for his supporters, whom he claimed were persecuted under President Joe Biden. This fund had previously faced legal challenges and was renounced by the administration.

However, the immunity deal itself drew scrutiny. Thirty-five former federal judges alerted the court, arguing it had been misled because the plaintiffs, Trump and his sons, had not disclosed the subsequent agreement with the Justice Department. U.S. District Judge Kathleen Williams ultimately voided the deal, stating the initial lawsuit was filed for an improper purpose. She found that Trump, as president, was essentially suing an agency he oversees, and that both parties had "worked in tandem."

The judge concluded the lawsuit was an attempt to legitimize the agreement, aiming to grant immunity and "appropriate billions of dollars from American taxpayers for grievances not defined by law." She also referred Trump's lawyer to the Florida bar for potential disciplinary action.