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US government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement

The revised deal bars the IRS from pursuing past tax claims against Trump and his companies while setting up a $1.776 billion compensation fund.

  • The U.S. government has permanently dropped all current tax claims and investigations against Donald Trump, his family, and affiliated entities as part of settling a $10 billion lawsuit over leaked tax returns.
  • The settlement includes the creation of a $1.776 billion Anti-Weaponization Fund to compensate individuals who claim they were unfairly targeted by the federal government for political reasons.
  • The settlement bars the government from prosecuting or examining tax returns filed before May 19, 2026.
  • Critics have expressed concerns that this settlement grants Trump and his associates a different standard of tax enforcement and enables political weaponization.
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The U.S. Attorney will not pursue Donald Trump or his family members or his businesses if they have to pay tax arrears, by virtue of an additional act added on Tuesday to an agreement concluded on Tuesday by the U.S. President and his administration, the Justice Department announces, reports AFP.

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New deal bars IRS from tax audits of Trump, his family and businesses

The agreement states the IRS is “FOREVER BARRED and PRECLUDED” from pursuing any claims over tax liabilities it may have against Trump, his family members and his companies.

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Politico broke the news on Tuesday, May 19, 2026.
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