Trump Sues IRS and Treasury for $10B Over Tax Return Leaks
A lawsuit like no other seen before has been filed
by President Donald Trump against the Internal Revenue Service (IRS) as well as
the U. S. Department of Treasury seeking damages amounting to $10 billion for
their failure in preventing the unauthorized release of his confidential tax
returns. The case was lodged on January 30, 2026, at a federal court in Miami
and also included Donald Trump Jr., Eric Trump, and Trump Organization as
co-plaintiffs.
According to Trump, his tax records were leaked in
both 2019 and 2020 because the IRS and Treasury were extremely careless or
intentionally did not protect confidential information from being disclosed to
third parties such as a former IRS contractor Charles Edward Littlejohn who
then leaked it to some major media houses like The New York Times and
ProPublica. For his part in the breach, Littlejohn was sentenced to five years
imprisonment.
Allegations of Harm and Political Consequences
The complaint filed by Trump’s attorneys argues that
the publication of his tax returns caused “significant and irreparable harm” to
his reputation and financial interests by portraying the family finances
negatively. It is claimed in the lawsuit that such public revelation injured
his reputation and probably had adverse effects on politics as well as business
outcomes throughout his first presidential term and campaigns.
From legal documents, it appears that Trump may be
after punitive damages besides the $10 billion compensation, which are said to
result from what plaintiffs call “gross negligence” or possible willful
misconduct on part of IRS and Treasury towards protection of taxpayer data.
An Unprecedented Move by a President
This is a very strange case where a sitting or just
outgoing head of state sues federal executive agencies. The suit poses
difficult questions concerning government accountability, data security
obligations, and federal laws safeguarding taxpayer information.
At the time of filing this report, neither the IRS
nor the Treasury Department had given any feedback regarding the case. These
bodies are known to keep tax return details strictly confidential under federal
laws, so there will be much attention paid by legal professionals and policy
experts to this particular matter.
Background: Largest IRS Data Breach in History
The lawsuit arises from what has been called the
biggest ever breach of IRS data. Littlejohn, while working as a contractor,
managed to get hold of and disclose tax returns for not only Trump’s family but
also many other rich people. His revelations uncovered delicate financial
information leading to widespread discussions on data security measures within
government institutions.
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