President Donald Trump speaks during a bilateral meeting with Syrian President Ahmed al-Sharaa alongside the NATO leaders summit at the Bestepe Presidential Compound in Ankara, Turkey, July 8, 2026. (Reuters/Jonathan Ernst)
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A U.S. judge on Monday voided President Donald Trump’s settlement with the IRS that gave him and his companies sweeping tax protections and initially set up a nearly $1.8 billion government fund to pay victims of so-called government weaponization that was later abandoned.
U.S. District Judge Kathleen Williams found that Trump and the IRS, which he oversees as president, were not truly adverse to each other as is required in civil lawsuits under the U.S. Constitution. Williams referred a Trump lawyer in the case and senior Justice Department officials who signed off on the settlement to state bar authorities to determine if their actions violated legal ethics rules.
“This action was never about a party seeking judicial resolution of a legal issue or a factual dispute,” Williams wrote. The judge said it was instead an attempt to “provide some legitimacy to an agreement to confer immunity to people and entities affiliated with the president and to earmark billions of dollars from American taxpayers to redress grievances not defined in the law.”
(Reporting by Andrew Goudsward and Dan Rosenzweig-Ziff; writing by Susan Heavey; Editing by Chizu Nomiyama)
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