In a sweeping concession, the Internal Revenue Service (IRS) has been “forever barred” from auditing President Trump’s tax returns filed prior to a settlement agreement finalized this week. The restriction was outlined in a single-page addendum to the Justice Department’s settlement of Trump’s lawsuit against the agency, made public Tuesday.
Signed by Acting Attorney General Todd Blanche, the document explicitly prohibits the IRS from probing any of Trump’s “tax returns filed before the effective date” of Monday’s settlement for any “presently known or unknown” claims. The language leaves no room for future scrutiny of those documents, effectively sealing them from government review.
The expanded settlement also shields a wide circle of Trump affiliates, including family members, trust funds, his parent company, sister entities, and related corporations and subsidiaries. This broad protection extends beyond the former president himself, insulating his inner circle from potential tax-related investigations tied to those returns.
On Monday, Trump announced he was dropping a $10 billion lawsuit against the IRS, which alleged the agency had improperly leaked his tax returns. In exchange, the Justice Department established a $1.776 billion “Anti-Weaponization Fund” designed to compensate individuals who claim they were unfairly targeted by previous administrations. The fund, named with a number echoing the year of American independence, is intended to address grievances over alleged political bias in federal enforcement.
Trump and his oldest sons, who were also plaintiffs in the lawsuit, will not receive any direct payout from the fund. Instead, they will be issued a formal apology from the DOJ, according to the department’s release.
The fund’s oversight will fall to a five-member commission appointed by the attorney general. One of those members will be chosen in consultation with congressional leadership, though the exact selection process and criteria remain unclear. Critics have already questioned the fund’s purpose and potential for misuse, with some lawmakers calling it a slush fund for political allies.
The settlement has drawn sharp reactions across the political spectrum. Senator Susan Collins, a Republican from Maine, recently criticized Trump’s endorsement of Ken Paxton in the Texas Senate runoff, calling Paxton “ethically challenged.” The fund’s creation has also sparked debate over its openness to Trump donors and even individuals who attacked police, as reported in Blanche’s defense of the fund. Senate Republicans blocked an effort by Senator Ruben Gallego to halt the $1.78 billion fund for Trump allies, as detailed in this report.
The Hill has reached out to the White House and the Justice Department for additional comment, but no further details have been released as of publication. The settlement effectively ends one of the most contentious legal battles between a former president and the tax agency, while raising new questions about executive accountability and the independence of federal tax enforcement.
