- The DOJ settlement now blocks the IRS from examining Trump’s past tax returns.
- Trump dropped a $10 billion lawsuit against the IRS in exchange for the settlement.
- Former IRS officials said this is the first time the IRS permanently waived audits.
The US Justice Department expanded its settlement with President Donald Trump this week to stop the Internal Revenue Service (IRS) from pursuing past tax claims against Trump, his family, trusts, and businesses.
The addendum, signed Tuesday by acting Attorney General Todd Blanche, states the IRS is “forever barred and precluded” from examining tax matters tied to returns filed before Monday’s settlement date.
The document appeared one day after Trump agreed to drop a $10 billion lawsuit against the IRS over the leak of his tax records.
The settlement also created a nearly $1.8 billion “Anti-Weaponization Fund” designed to compensate individuals and organizations that claim they were politically targeted by previous administrations.
New Addendum Quietly Expanded the Deal
The original settlement agreement released Monday did not mention IRS audit protections.
The additional one-page addendum appeared later on the Justice Department website. The language extended beyond Trump personally and covered family members, affiliated companies, trusts, and related entities.
The waiver blocked the IRS from pursuing claims that “were raised or could have been raised” before the settlement date.
Justice Department officials later argued the provision was a standard settlement waiver intended to stop both sides from reopening disputes tied to older claims.
The department also said the protection only applied to existing audits and tax matters connected to prior filings, not future tax returns.
Critics Call the Agreement Unprecedented
The settlement immediately triggered backlash from former IRS officials and Democratic lawmakers.
Former IRS Commissioner Daniel Werfel said he was unaware of any previous case where the IRS permanently agreed to avoid examining previously filed returns tied to a specific person or business.
Another former IRS commissioner, John Koskinen, called the agreement a “terrible precedent” and warned it could effectively hand Trump a financial benefit by removing audit risk. Earlier reports estimated that one IRS tax dispute involving Trump could result in liabilities exceeding $100 million.
Democratic lawmakers accused the administration of negotiating a settlement that directly benefited the president while he controlled the agencies involved in the dispute.
Sen. Jack Reed criticized the arrangement during Todd Blanche’s congressional testimony, arguing Trump had effectively negotiated with agencies run by his own administration.
Rep. Richard Neal also condemned the deal and accused Trump of turning federal agencies into personal protection tools.
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