US permanently drops tax claims against Trump in IRS lawsuit deal
The Internal Revenue Service will not pursue Trump, his family or companies for back taxes under a settlement agreement
The US government will permanently drop tax claims against US President Donald Trump, according to a settlement document made public Tuesday, in an extraordinary use of executive power that could effectively help shield the president from further examination of his finances and legal conduct.
The settlement refers only to existing audits, not future examinations, the Justice Department said in response to a request for comment on the expanded settlement.
The move came after the Trump administration announced Monday, as part of the lawsuit settlement, the creation of a nearly US$1.8 billion fund to compensate allies of the Republican president who believe they have been unjustly investigated and prosecuted, an arrangement that Democrats and government watchdogs criticise as “corrupt” and unconstitutional.
The “Anti-Weaponization Fund” of US$1.776 billion would allow people who believe they were targeted for prosecution for political purposes, including by the Biden administration Justice Department, to apply for payouts, creating what Blanche called “a lawful process for victims of lawfare and weaponisation to be heard and seek redress”.