The U.S. Department of Justice issued an addendum to its settlement with President Donald Trump permanently barring the IRS from auditing tax returns filed by Trump, his family, trusts, and affiliated businesses before May 18, 2026.
Acting Attorney General Todd Blanche signed the document stating the government is forever precluded from pursuing examinations or related reviews arising from pending matters. The Justice Department clarified the bar applies to existing audits, not future returns.
The terms were added after Trump voluntarily dismissed his $10 billion lawsuit over leaked tax records. The broader settlement also created a nearly $1.8 billion fund for claims of government weaponization, drawing criticism from Democratic lawmakers as self-dealing.
Tax law experts said the audit prohibition is unprecedented and difficult to reverse. Senator Ron Wyden called the arrangement a breathtaking abuse of the tax system.
Trump filed the lawsuit January 29, 2026, after contractor Charles Littlejohn leaked tax records and received a five-year prison sentence. The $1.776 billion anti-weaponization fund drew Senate Judiciary scrutiny from Democrats Elizabeth Warren and Ron Wyden. Former House Ways and Means Chairman Richard Neal said IRS audits of Trump were delayed during his first presidency. Legal scholars said reversing the audit bar may require showing fraud or new legislation.
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Sources:
https://www.democracynow.org/2026/5/20/headlines