Trump Family Sues IRS for $10 Billion Over Tax Data Breach

Featured & Cover Trump Family Sues IRS for $10 Billion Over Tax Data Breach

President Donald Trump, his sons, and the Trump Organization are suing the IRS and U.S. Treasury for $10 billion over alleged leaks of their confidential tax information.

President Donald Trump, along with his two eldest sons and the Trump Organization, has filed a lawsuit against the Internal Revenue Service (IRS) and the U.S. Treasury Department. The suit, which seeks at least $10 billion, was lodged in Miami Federal Court and centers on claims of unauthorized leaks of their confidential tax information.

The civil complaint alleges that the IRS and Treasury failed to fulfill their duty to protect sensitive tax records from being disclosed. The leaks reportedly originated from former IRS employee Charles “Chaz” Littlejohn during the years 2019 and 2020.

The plaintiffs in the case include Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization, which is managed by the two sons. A spokesperson for Trump’s legal team stated that the IRS allowed a politically motivated employee to leak private information about Trump and his family to various media outlets, including the New York Times and ProPublica. This information was subsequently disseminated to millions of people, according to the spokesperson.

Trump has previously refrained from releasing his tax returns, citing an ongoing audit. This marked a departure from nearly 50 years of precedent, as he did not disclose his tax documents during his 2020 re-election campaign. However, in September 2020, the New York Times published a detailed report on Trump’s tax returns, revealing that he paid only $750 in federal income taxes in the year he won the presidency and no taxes at all in 10 of the previous 15 years. Trump later released his tax documents in 2022.

The lawsuit contends that both the IRS and the Treasury Department had a responsibility to safeguard taxpayer information but failed to implement necessary precautions to prevent public disclosure.

Littlejohn, the former IRS contractor, pleaded guilty in 2023 to stealing tax data from Trump and thousands of other affluent Americans. He was sentenced to five years in prison in 2024 for his actions.

The lawsuit accuses Littlejohn of exploiting his access to taxpayer data to advance his personal political agenda, believing he was above the law. It states that Littlejohn viewed Trump as a “dangerous” figure and a “threat to democracy,” asserting that the disclosure of Trump’s tax information was necessary due to what he perceived as political “norms.”

During a deposition, when asked whether he intended to cause harm to Trump, Littlejohn responded, “Less about harm, more just about a statement. I mean, there’s little harm that can actually be done to him, I think… He’s shown remarkable resilience.”

It is uncommon for a sitting president to sue their own administration, and the substantial damages being sought raises potential conflict-of-interest concerns. Nonetheless, Trump has pursued similar legal actions in the past. In October, the New York Times reported that Trump sought $230 million from the Department of Justice as compensation for previous investigations into his conduct.

This lawsuit marks another chapter in the ongoing legal battles surrounding Trump and his family, as they seek accountability for what they allege to be breaches of privacy and trust by federal agencies.

According to The American Bazaar, the outcome of this case could have significant implications for the handling of taxpayer information and the responsibilities of federal agencies in safeguarding such data.

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