President Donald Trump initiated an appeal against a federal judge’s decision questioning the legality of a lawsuit. The lawsuit involved Trump, his two sons, and the Trump Organization against the IRS. On Friday, the Trumps announced their intent to appeal the July 13 ruling by U.S. District Judge Kathleen Williams. The judge had labeled the $10 billion lawsuit as being filed for an “improper purpose.”
The case prompted the Justice Department to create a $1.8 billion fund, known as the “anti-weaponization” fund, as part of a settlement. This settlement included an agreement that the government would not pursue investigations or payments from Trump, his family, and their companies on existing tax claims.
The IRS did not comment on the appeal. Trump’s legal team’s spokesperson accused the IRS of allowing a politically motivated employee to leak confidential information about Trump and his organization. This information was reportedly released to millions through news outlets.
A former IRS contractor admitted to stealing Trump’s tax records and pleaded guilty in 2023. He stole these records, along with thousands of others, in 2019 and 2020 and leaked them. The contractor is currently serving a five-year prison sentence.
Earlier this year, Trump sued the IRS and the Treasury Department. He alleged they were responsible for the unauthorized release of his tax documents. The New York Times had reported that Trump paid only $750 in federal income taxes in 2016 and 2017.
Judge Williams, appointed by Barack Obama, stated her belief that Trump’s lawsuit aimed to “manipulate the judicial process” rather than protect rights. She highlighted Trump’s influence over the Justice Department, Treasury Department, and IRS.
Williams also ruled that the Justice Department could not describe the settlement as a judicial agreement. She imposed sanctions on acting Attorney General Todd Blanche, previously a personal lawyer for Trump, and Associate Attorney General Stanley Woodward. The judge further suggested the Florida Bar Association examine potential disciplinary actions against Trump’s attorney, Alejandro Brito.
The settlement has created a conflict between two Republican senators and the Justice Department. This standoff has delayed a vote on Blanche’s nomination for attorney general. Senators John Cornyn of Texas and Thom Tillis of North Carolina have insisted that the DOJ dismantle the “anti-weaponization” fund and limit the audit protection agreement before supporting Blanche’s nomination.
Trump acknowledged on Friday morning that the fund is no longer active but expressed his regret, stating, “I wish it weren’t.” When asked if he would consider limiting the terms of the tax deal for himself and his family, Trump did not respond.
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