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Politics

Trump IRS Lawsuit Ruled Improper

A federal judge said Donald Trump misused an IRS case and referred his lawyer for discipline.

July 13, 2026 · Updated Jul 13, 8:10pm ET

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What happened

U.S. District Judge Kathleen Williams on July 13 nullified President Donald Trump’s settlement with the IRS and Justice Department in his $10 billion suit over leaked tax returns, blocking a $1.776 billion “anti-weaponization” fund and audit-immunity terms. Williams ruled there was no real case or controversy because Trump effectively controlled both sides, and said the lawsuit was filed for an “improper purpose” to give the settlement judicial legitimacy. The 56-page order imposed sanctions on lawyers involved, referred at least one Trump attorney for possible bar discipline, and barred the parties from relying on the settlement.

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