Trump Keeps IRS Audit Immunity in Long-Running Feud Victory
President Donald Trump has maintained immunity from Internal Revenue Service tax audits, a landmark victory in his long-running battle with the tax agency, after a one-page addendum to his $10 billion lawsuit settlement “forever barred” the government from pursuing tax claims against him, his family, and his businesses. The protection, signed by Acting Attorney General Todd Blanche on May 19, applies to tax returns filed before that date, according to Al Jazeera.
Background: A Decade-Long Feud
Trump has claimed for years that he was subjected to more than a decade of continuous IRS audits, which he used as justification for breaking with a tradition dating back to 1980 of major-party presidential nominees voluntarily releasing their tax returns. When the House Ways and Means Committee released six years of his tax returns in 2022, the documents showed that Trump paid just $750 in federal taxes in 2016 and 2017, and nothing in 2020, after reporting massive losses.
In January 2026, Trump and his two eldest sons sued the IRS for $10 billion over the leak of their tax returns to media outlets between 2018 and 2020. A government contractor had pleaded guilty in 2023 to stealing tax information of Trump and other wealthy Americans.
The Settlement and the Addendum
On May 18, the Department of Justice announced a settlement of Trump’s lawsuit that included the creation of a $1.776 billion “Anti-Weaponization Fund” to compensate people who claimed to have been victims of politically motivated “lawfare.” But it was the addendum signed the following day that drew the sharpest criticism.
The one-page document, posted to the Justice Department’s website without any official announcement, states that the government is “FOREVER BARRED and PRECLUDED” from “prosecuting or pursuing” tax claims against Trump, his family, and his businesses for matters “currently pending or that could be pending.” The DOJ later clarified that the addendum “is only with respect to existing audits, not future” tax filings, as BBC News reported.
Legal and Constitutional Concerns
Legal experts across the political spectrum have raised alarms. Brandon DeBot, Policy Director of the Tax Law Center at NYU School of Law, called the arrangement a “breathtaking abuse of the tax and legal system,” arguing that the Department of Justice does not have the authority to offer such broad protections, according to ABC News.
Richard Painter, chief White House ethics lawyer under President George W. Bush, said the immunity could violate the Domestic Emoluments Clause of the US Constitution, which prohibits the president from receiving any profits or advantages from the government beyond his salary.
Senator Ron Wyden (D-OR), the top Democrat on the Senate Finance Committee, called the addendum “clearly a violation of the law that prohibits interference by executive branch officials in IRS audits.” Senator Adam Schiff (D-CA) accused the administration of “self-dealing,” saying: “The tax-dodging President gets himself and his whole family a tax break, thanks to Todd Blanche.”
The Anti-Weaponization Fund Collapses
The $1.776 billion fund faced fierce backlash from both Democrats and some Republicans. Senate Majority Leader John Thune (R-SD) expressed skepticism, and Rep. Brian Fitzpatrick (R-PA) co-sponsored bipartisan legislation to ban using federal funds for it.
On June 2, Blanche confirmed the fund was scrapped, telling a House panel: “We are not moving forward with the fund, period,” as CNBC reported. However, the audit immunity provision remained firmly in place.
What’s Next
The immunity creates an unprecedented situation where the president and his family are treated differently from other US taxpayers regarding tax enforcement. It remains unclear whether Trump, his family, or his businesses were under active IRS audit at the time of the settlement — the IRS does not disclose such information. In 2024, The New York Times reported that a long-running audit could have resulted in a tax bill exceeding $100 million.
Trump announced on June 4 that he would nominate Blanche as permanent Attorney General — the same person who signed the addendum granting the immunity — raising further questions about the independence of the Justice Department. Legal challenges to the settlement’s provisions may continue, but for now, the president has secured a significant victory in his long-running feud with the IRS.