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Trump, in court filing, says he plans to drop his $10B lawsuit against IRS

Sources have said he plans to create a "weaponization" fund for allies.

Published May 18, 2026, 1:20 PM
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 Trump, in court filing, says he plans to drop his $10B lawsuit against IRS

Attorneys representing President Donald Trump informed a federal judge on Monday that the president plans to drop his $10 billion lawsuit against the Internal Revenue Service.

ABC News has reported that Trump was planning to drop the suit in exchange for the creation of a $1.776 billion compensation fund for those who allege they were wrongly targeted under the Biden administration. 

Trump sued the IRS after a government contractor pleaded guilty in 2023 to stealing the tax information of Trump and other wealthy Americans and leaking it to media outlets in 2019 and 2020.

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