Trump’s DOJ Bars IRS From Investigating Trump’s Taxes in Secret Settlement Addendum
Federal Government Permanently Shields President, Family and Companies From Tax Probes
The United States Department of Justice has formally agreed to permanently bar the Internal Revenue Service from investigating Donald Trump, his family members and his affiliated companies over unpaid taxes — a provision quietly added to a lawsuit settlement one day after the original agreement was signed.
The stipulation, contained in a one-page document signed by Acting Attorney General Todd Blanche on May 19, declares the IRS “forever barred and precluded” from pursuing tax examinations into Trump and “related or affiliated individuals,” including family members, trusts, and “related companies, affiliates and subsidiaries.” The agreement covers all tax returns filed before the date of Monday’s settlement.
A Settlement Negotiated on Both Sides by Trump’s Own Appointees
The arrangement stems from a lawsuit Trump filed against his own IRS, in which he sought $10 billion in damages. The case was settled through his own Justice Department, which agreed to establish a $1.776 billion “Anti-Weaponization Fund” — drawing on taxpayer money — in exchange for Trump dropping his claims.
The original nine-page settlement, signed by Associate Attorney General Stanley Woodward, IRS Commissioner Frank Bisignano and Trump attorney Daniel Epstein, made no mention of dropping tax investigations. The tax immunity provision appeared only in the subsequent document, signed by Blanche alone.
It remains unclear why the sweeping shield was added separately, a day after the primary agreement was executed.
DOJ Defends the Arrangement
Justice Department spokesperson Natalie Baldassarre told The Independent that the waivers were “customary in settlements.” She added: “There would be little point in settling several significant claims if either party could simply turn around and seek to initiate more adverse claims that could have been pursued previously.”
Baldassarre specified the agreement applies only to “existing audits, not future” investigations.
The Anti-Weaponization Fund: Who Pays, Who Benefits
The newly created fund will accept claims from individuals who allege they were subjected to government “weaponization” — a term Trump has repeatedly used to describe what he characterises as Democratic-led persecution of himself and his allies.
Trump and his family members are formally ineligible to receive payments from the fund, according to Blanche. However, neither Blanche, Trump nor Vice President JD Vance has ruled out payments to individuals convicted of assaulting law enforcement officers during the January 6, 2021 Capitol attack, or to Trump’s political donors.
A five-member commission, with all members appointed by Blanche, will manage disbursements. The list of recipients will remain “confidential,” Blanche told the Senate Appropriations Committee on Tuesday — the same morning he signed the tax immunity memo.
Legal Challenges and Political Condemnation
Brian Morrissey, the general counsel of the Treasury Department, resigned within hours of the fund’s announcement.
Watchdog organisation Public Citizen, which has filed repeated legal challenges against the Trump administration, said the arrangement “crossed the line into illegality,” arguing it violates a federal statute prohibiting presidential requests to terminate tax audits.
“Trump filed a bad-faith lawsuit based on actions that occurred while he was president of the United States,” said co-presidents Robert Weissman and Lisa Gilbert. “He sought a preposterous level of damages. Because the case involved Donald Trump on both sides, the court raised serious concerns about it moving forward.”
Senate Minority Leader Chuck Schumer described the deal as Trump’s “get-out-of-jail-free card that he negotiated himself.”
Senator Patty Murray was more direct, telling Blanche: “This is corruption that has never been more blatant. You write the check, Trump and his cronies cash it, and American taxpayers who are already being whacked with high prices are gonna foot the bill.”
The Independent has requested comment from the Justice Department. This article will be updated if a response is received.