Trump Sues IRS and Treasury for $10 Billion Over Tax Information Leak
In a significant legal development, President Donald Trump has filed a lawsuit against the Internal Revenue Service (IRS) and the U.S. Treasury Department seeking $10 billion in damages. The lawsuit arises from allegations that these federal agencies failed to protect the confidentiality of Trump’s tax information, which was leaked to news outlets between 2018 and 2020.
Background of the Lawsuit
The suit, submitted in a Florida federal court, includes not only President Trump but also his sons, Eric Trump and Donald Trump Jr., as well as the Trump organization as plaintiffs. The filing claims that the unauthorized disclosure of Trump’s tax records has resulted in “reputational and financial harm,” leading to public embarrassment and a tarnished business reputation for the plaintiffs.
Reputational Damage
According to the lawsuit, the breaches caused by the IRS and Treasury have adversely impacted Trump’s public standing, particularly during the contentious 2020 presidential election. The suit contends that these leaks have portrayed the Trump family in a “false light,” severely affecting their business operations.
The Leaks and Legal Consequences
The controversy escalated when Charles Edward Littlejohn, a former IRS contractor, was sentenced to five years in prison for leaking financial details of Trump and other high-profile individuals, including Jeff Bezos and Elon Musk. Littlejohn, who worked for Booz Allen Hamilton, has been identified as the source of the leaks which prosecutors referred to as "unparalleled in the IRS’s history."
Violations of Confidentiality
The disclosure violated IRS Code 6103, a law that enforces strict confidentiality on taxpayer information. In 2020, The New York Times reported that Trump had not paid federal income taxes for several years prior to 2020. Additionally, ProPublica published disturbing insights into discrepancies in Trump’s tax records the following year, further fueling public scrutiny.
Public Release of Tax Returns
In an unprecedented move, six years of Trump’s tax returns were later released by the then-Democratically controlled House Ways and Means Committee. These disclosures have been argued to undermine both Trump’s financial credibility and his political standing amongst voters.
Impact of the Leak on Trump’s 2020 Campaign
Trump’s lawsuit asserts that the leaks not only harmed his reputation but also adversely affected his support among voters leading into the 2020 election cycle. The ramifications from the unauthorized disclosures were profound, causing Trump to fight against narrative shifts that framed him unfavorably during a critical election year.
Response from the Treasury Department
The lawsuit is notable against the backdrop of the U.S. Treasury Department’s decision to terminate its contracts with Booz Allen Hamilton. Following Littlejohn’s conviction, Treasury Secretary Scott Bessent criticized the firm for its inadequate safeguards in protecting sensitive taxpayer information, emphasizing the necessity of stringent security measures for confidential data.
Conclusion
The unfolding legal proceedings may have implications not only for Trump but also for the practices followed by federal agencies responsible for safeguarding sensitive information. The outcome of this lawsuit could serve as a significant precedent regarding the management and protection of taxpayer data, further igniting public and political discourse around transparency and accountability in government.
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Click here to read more about the IRS Code 6103 violations. Explore the details of the leaks that led to Trump’s lawsuit against the IRS.
