U.S. President Donald Trump (right) and his son Eric Trump (left) depart from the White House on their way to Charlottesville, Virginia, on April 10, 2026 in Washington, DC.
Celal Gunes | Anadolu | Getty Images
President Donald Trump, his two eldest sons, and the Trump Organization on Monday dropped a $10 billion lawsuit against the Internal Revenue Service, according to a filing in Miami federal court.
The filing by Trump’s lawyers does not say what led to this surprising move.
This comes on the heels of controversy over reports that the Justice Department is negotiating a settlement with the president that could see the federal government pay $1.7 billion into a compensation fund for Trump allies who allege mistreatment by the Biden administration.
Democratic lawmakers said it would be a “slush fund.”
CNBC asked the Justice Department whether the dismissal of Trump’s lawsuit comes in conjunction with the government’s settlement of Trump’s out-of-court claims.
Donald Trump, Donald Trump Jr., Eric Trump and The Trumps voluntarily dropped their lawsuits against the IRS “with prejudice,” according to a court filing Monday.
Prejudice means that the plaintiff cannot renew the same claim in another civil action.
Trump sued the IRS in late January, alleging that IRS employee Charles “Chaz” Littlejohn leaked his tax information in 2019 and 2020.
A spokeswoman for Mr. Trump’s lawyer had no immediate comment on the firing.
The IRS did not respond to requests for comment.
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