Business

Trump withdraws $10 billion lawsuit against the IRS

The former US president drops the high-profile suit filed in late January 2026, leaving the status of related proceedings against the individual whistleblower unclear.

Author
Owen Mercer
Markets and Finance Editor
Published
Draft
Source: CNBC · original
Trump drops $10 billion lawsuit against IRS
Legal action concerning alleged tax data leaks by former employee Charles Littlejohn is dismissed

Donald Trump has withdrawn a $10 billion lawsuit against the Internal Revenue Service (IRS), ending a legal battle that had focused on the alleged mishandling of his personal financial records. The withdrawal marks the conclusion of a suit originally filed in late January 2026, which sought substantial damages from the federal tax agency.

The legal action was initiated following reports that former IRS employee Charles "Chaz" Littlejohn had leaked Trump’s tax information during the 2019 and 2020 tax years. The lawsuit named the agency as the primary defendant, alleging negligence or complicity in the breach of confidentiality that exposed private financial data to public scrutiny.

While the suit against the government body has been dismissed, the source material does not provide specific details regarding the strategic reasoning behind the withdrawal. It remains unclear whether this decision reflects a settlement, a change in legal strategy, or other procedural factors influencing the former president’s legal team.

The matter is distinct from separate ongoing investigations into security breaches at a recent US press gala, which involved an attempted assassination of President Trump. That inquiry, led by federal investigators, focuses on security protocols and motives unrelated to the financial data leak that was the subject of the IRS litigation.

The current status of any separate legal proceedings against Charles Littlejohn personally is not detailed in the available reporting. As the lawsuit against the IRS is withdrawn, the broader implications for how the agency handles sensitive taxpayer information and the potential for further legal action against the former employee remain to be seen.

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