Acting Attorney General Todd Blanche testifies during a Senate Appropriations subcommittee hearing on the Justice Department’s 2027 budget request in Washington on Tuesday, May 19, 2026. The Justice Department on Tuesday expanded the agreement it reached this week with President Trump to resolve his extraordinary lawsuit against the Internal Revenue Service to include a provision that would bar the agency from pursuing tax claims against the president, his family or his businesses. (Kenny Holston/The New York Times)
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The Justice Department on Tuesday expanded the agreement it reached this week with President Donald Trump to resolve his extraordinary lawsuit against the IRS to include a provision that would bar the agency from pursuing tax claims against the president, his family or his businesses.
In a one-page document signed by acting Attorney General Todd Blanche and quietly posted on the department’s website, officials vowed not to pursue any matters, including those involving Trump’s tax returns, that are currently pending.
The new provision was released just one day after Trump agreed to drop his suit in exchange for the creation of a $1.8 billion compensation fund for people he believes were wronged by federal investigations or prosecutions. The fund drew repeated criticism from Democrats when Blanche appeared before a Senate Appropriations subcommittee for a hearing Tuesday morning.
The New York Times reported last week that Trump’s talks with the Justice Department and the IRS had included a measure calling on the IRS to drop any audits of the president, his relatives or businesses. But that provision did not appear in the nine-page agreement laying out the terms to dismiss the lawsuit, which the department released Monday.
In January, Trump, along with two of his sons and the Trump family business, sued the IRS for at least $10 billion over the leak of their tax returns during the president’s first term. The Trumps argued that the IRS should have done more to prevent a former contractor from disclosing tax information to the Times and ProPublica.
Neither the Justice Department nor the IRS immediately responded to requests seeking comment. The top lawyer at the Treasury, Brian Morrissey, resigned Monday after the Justice Department announced the settlement with Trump.
Justice Department officials have in part defended the creation of the “anti-weaponization” fund by pointing to the fact that Trump and his family members will not be paid by it.
But protection from audit could be quite remunerative for Trump. In 2024, the Times reported that a loss in an IRS audit could cost Trump more than $100 million.
It is unclear if that examination has concluded or if Trump, his family members or affiliated entities are under other audits. IRS procedures call for the mandatory audit of the president’s tax returns annually.
Federal law prohibits the president, vice president and other executive officers from instructing the IRS to start or stop specific audits. But that broad prohibition does appear to include a carve out for the attorney general.
This article originally appeared in The New York Times.
By Alan Feuer and Andrew Duehren/Kenny Holston
c. 2026 The New York Times Company
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