In a highly unusual and unprecedented legal move, Donald Trump, his two sons, and the Trump Organization have filed a $10 billion lawsuit against the Internal Revenue Service (IRS) and the Treasury Department, claiming the government failed to protect their confidential tax information. The lawsuit, filed Thursday in Miami federal court, stems from the 2019–2020 leaks of Trump’s tax returns and those of his family, which were widely reported by the New York Times, ProPublica, and other outlets.
📂 The Basis of the Lawsuit
The suit names Trump, Donald Trump Jr. and Eric Trump, along with the Trump Organization, and alleges that the IRS and Treasury “failed to establish proper safeguards” to protect the confidentiality of their tax returns. According to the complaint, the leaked documents caused:
Reputational and financial harm
Public embarrassment and false portrayals
Negative effects on President Trump and the plaintiffs’ public standing
The documents, originally leaked by former IRS contractor Charles Littlejohn, exposed sensitive financial details and fueled widespread media coverage of Trump’s tax strategies.
💰 The Leak That Shook Billionaires
Littlejohn, a former Booz Allen Hamilton employee, leaked Trump’s tax returns along with those of other wealthy individuals. In January 2024, he was sentenced to five years in prison, with the judge calling it “the biggest heist in IRS history.”
The leaks prompted ProPublica to publish more than 50 investigative stories, exposing tax practices of some of the world’s richest people, including Elon Musk, Jeff Bezos, Warren Buffett, and Michael Bloomberg.
Trump’s lawsuit asserts that the leak was aimed at “leftist media outlets” and unfairly targeted him and his family, a claim highlighting his long-standing tension with investigative reporting on his finances.
📰 Historical Context
Trump broke with presidential tradition by refusing to release his tax returns, both as a candidate and as president, fueling speculation about his personal wealth. Investigative reporting revealed that in 2016, the year he was elected, Trump reportedly paid only $750 in federal income tax and no income tax for 10 of the prior 15 years due to reported losses exceeding his earnings.
⚖️ Legal and Political Fallout
The lawsuit is extraordinary because it involves a sitting U.S. president suing parts of his own government — a scenario rarely, if ever, seen in American history.
The Treasury Department, which oversees the IRS, has not yet commented on the lawsuit, though it did announce earlier this week that it was canceling contracts with Booz Allen Hamilton in response to the leaks of tax documents for Trump and thousands of other wealthy Americans.
Legal experts suggest that the case could reignite debates over the security of taxpayer information, government accountability, and presidential privileges, as well as draw national attention given Trump’s ongoing influence in U.S. politics.
⚠️ Key Takeaways
Trump and his family are demanding $10 billion in damages for reputational and financial harm.
The lawsuit stems from leaks by Charles Littlejohn, who is now serving a five-year prison sentence.
The leaks revealed details about Trump’s finances and those of other billionaires, sparking years of media scrutiny.
This unprecedented legal action pits a sitting president against his own government, raising both legal and political stakes.
As the lawsuit unfolds, it could set new precedents on government accountability, privacy protections, and the limits of presidential authority — all while keeping Trump in the media spotlight.