In a controversial move, the Trump administration has effectively shielded former President Donald Trump, his family, and his businesses from any potential audits by the Internal Revenue Service (IRS), a decision that could relieve him of a tax burden estimated to be as high as $100 million.
According to a document from the Department of Justice, the IRS is “forever barred and precluded” from conducting audits on Trump, any related individuals, or any associated trusts and businesses. This declaration emerged as part of a broader agreement reached earlier this week.
This provision was included in a settlement involving a $10 billion lawsuit Trump had filed against the IRS. As a result, a $1.8 billion fund was established to benefit his political allies, marking a significant resolution orchestrated by the Justice Department.
Acting Attorney General Todd Blanche, who previously served as Trump’s personal attorney, signed the order. The decision was discreetly published on the Justice Department’s website, adding a layer of intrigue to the unfolding situation.
A prior audit by the IRS in 2024 on Trump’s tax returns had the potential to cost him over $100 million. However, details remain murky regarding the status of that examination or whether any other audits are pending for Trump, his family, or any associated businesses.
It’s important to note that current IRS protocols require an annual audit of the President’s tax returns, highlighting the exceptional nature of this decision.
Federal law prohibits the president, vice president, and other White House officials from instructing the IRS on audits.
The Justice Department, however, appears to be using a loophole that allows the attorney general to halt existing tax investigations.
Donald Trump’s administration is moving to block the Internal Revenue Service from ever pursuing past audits against the President, his family, or his businesses, a maneuver that could spare him a tax bill estimated at up to $100 million
A prior IRS audit in 2024 on Trump’s tax filings could have cost Trump more than $100 million
The one-page order was signed by Acting Attorney General Todd Blanche, Trump’s former personal attorney, and quietly posted to the Justice Department’s website
The audit, uncovered in May 2024 by The New York Times, revolved around Trump’s Chicago skyscraper, the Trump International Hotel and Tower.
The IRS accused the President of writing off his losses on the building twice by first claiming his investment was ‘worthless’ on a 2008 tax return.
Trump then allegedly changed ownership of the property into a new partnership he also controlled to declare another $168 million in losses over the next ten years.
Tax experts told the Times that the revision sought by the IRS could leave Trump owing more than $100 million, plus interest and potential penalties.
The current settlement deal by the IRS is tied to a $1.776 billion fund which will have the power to issue formal apologies and monetary relief owed to claimants who were subjected to ‘lawfare’ under the Biden administration.
This is believed to include some 1,600 January 6 defendants, as well as Trump’s political allies.
While Trump is barred from directly receiving payments from the fund, entities associated with him are not explicitly prohibited from filing additional ones.
The President, his sons Don Jr and Eric, and the Trump Organization initially filed suit against the Treasury and IRS in the Southern District of Florida federal court after the leak of their tax returns in 2019.
Five commissioners will be appointed to oversee the fund and disburse payments to those seeking redress for alleged political persecution under Biden.
The audit, uncovered in May 2024 by The New York Times, revolved around Trump’s Chicago skyscraper, the Trump International Hotel and Tower
‘QAnon Shaman’ Jacob Chansley, right with fur hat, during the January 6 riot in 2021
Acting Attorney General Todd Blanche, Trump’s former attorney who defended him during his criminal trials, will be responsible for appointments to the commission. Trump has the authority to remove any member.
Blanche was grilled by a Democratic senator on Capitol Hill Tuesday, with some calling it the most corrupt act in presidential history.
The AG defended the fund, stating that it would not be limited to Republicans or those investigated by the Biden DOJ. Blanche said all payouts will be a matter of public record.
He described the fund as ‘a lawful process for victims of lawfare and weaponization to be heard and seek redress.’
Democratic Senator Chris Hollen pressed Blanche on whether Capitol rioters who assaulted police officers would be eligible for payment.
‘Anybody in this country is eligible to apply if they believe they were a victim of weaponization,’ Blanche replied.
It was not immediately clear who precisely would stand to benefit from the fund, but its creation reflects Trump’s long-running claims that the Justice Department during the Biden administration was weaponized against him.
