Home Community Insights Trump Sues IRS and Treasury for $10bn Over Tax Return Leak, Escalating Long-Running Battle With Federal Agencies and Media

Trump Sues IRS and Treasury for $10bn Over Tax Return Leak, Escalating Long-Running Battle With Federal Agencies and Media

Trump Sues IRS and Treasury for $10bn Over Tax Return Leak, Escalating Long-Running Battle With Federal Agencies and Media

U.S. President Donald Trump on Thursday filed a $10 billion lawsuit against the Internal Revenue Service and the Treasury Department, accusing the agencies of failing to safeguard his confidential tax records, which were leaked to the media in 2019 and 2020.

The complaint, filed in federal court in Miami, names the IRS and Treasury as defendants and alleges that the agencies failed to take what it described as “mandatory precautions” to prevent the disclosure of highly sensitive tax information by a former IRS contractor, Charles Littlejohn. Trump filed the suit alongside his adult sons, Donald Trump Jr. and Eric Trump, as well as the Trump Organization.

According to the filing, Littlejohn unlawfully accessed and leaked the tax returns to media outlets, including the New York Times and ProPublica, publications the plaintiffs characterized as “leftist media outlets.”

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The lawsuit claims the disclosures caused “significant and irreparable harm” to their reputations and financial interests, arguing that the damage went beyond embarrassment and extended into their business operations and public standing. The plaintiffs said they may seek punitive damages, contending that the leaks were either willful or the result of gross negligence by government agencies tasked with protecting taxpayer data.

The case places Trump in a rare legal posture of suing agencies within the Executive Branch, which he now leads following his return to the White House after winning a second term in 2024. While the IRS operates under the Treasury Department, neither agency immediately responded to requests for comment after business hours. Treasury Secretary Scott Bessent, who is also serving as acting IRS commissioner, is not named as a defendant.

The lawsuit revisits one of the most consequential tax data breaches in modern U.S. history. Prosecutors charged Littlejohn in September 2023 with leaking the tax records of Trump and thousands of other wealthy Americans, saying he acted out of a political motive. Court records show that Littlejohn pleaded guilty the following month to disclosing income tax return information without authorization. In January 2024, he was sentenced to five years in prison.

Trump’s complaint details the scope of the media coverage stemming from the leaks, stating that the New York Times published at least eight articles based on the disclosures, while ProPublica published more than 50. The plaintiffs argue that the reporting portrayed them in a false light, unfairly tarnished their business reputations, and negatively affected Trump’s public image at a critical political moment. The filing contends that the cumulative impact of the coverage amounted to lasting reputational and financial damage.

The lawsuit also fits into a broader pattern of aggressive legal action by Trump against media organizations and institutions since his return to office. In recent months, he has filed several high-profile lawsuits seeking multibillion-dollar damages over news coverage he says was defamatory or politically motivated. These include a $15 billion suit against the New York Times and book publisher Penguin Random House over reporting and a book Trump says was designed to undermine his 2024 election prospects. He is also seeking $10 billion from the Wall Street Journal over an article referencing a birthday greeting linked to disgraced financier Jeffrey Epstein, and another $10 billion from the BBC over its editing of a speech delivered before the January 6, 2021, storming of the U.S. Capitol.

All of these cases, including the latest lawsuit against the IRS and Treasury, were filed or assisted by Alejandro Brito, a Florida-based attorney who has emerged as a central figure in Trump’s legal strategy.

Beyond the specific claims over the tax leaks, the lawsuit points to a larger tension between Trump and federal institutions that predated his second term and has continued into his current presidency. By targeting the IRS and Treasury, Trump is not only seeking damages for past disclosures but also signaling a broader challenge to how federal agencies handle sensitive information, particularly when it involves high-profile political figures.

The case is likely to draw close scrutiny, given its implications for government accountability, taxpayer privacy, and the legal boundaries of suing federal agencies from within the Executive Branch itself.

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