The US Justice Department has quietly added a provision to a controversial agreement that permanently bars the Internal Revenue Service (IRS) from auditing Donald Trump's past tax returns. The addendum, signed by acting Attorney General Todd Blanche, states that the government is 'forever barred' and 'precluded' from examining the tax returns of Trump, his family, his company, and related entities for any filings made before the agreement was reached.
The provision was slipped into a widely criticised agreement that creates a $1.776bn fund to compensate allies of the former president. The fund, announced on Monday, was part of a deal in which Trump dropped a $10bn lawsuit against the IRS and other claims against the government. The IRS had recommended fighting the lawsuit, but the agency decided to settle, raising questions about improper interference.
The fund will be managed by five people who can be fired at will by the president. It does not have to disclose who receives money or the reasons for awards. During a Senate hearing on Tuesday, Democrats harshly criticised the arrangement. Senator Chris van Hollen called it an 'outrageous, unprecedented slush fund'. Blanche testified that there are no limitations on who can seek claims, including those convicted of assaulting police officers on January 6, though he said Trump and his sons would not personally receive compensation.
Blanche insisted that the fund would have accountability through quarterly confidential reports to the attorney general, which he said would become public. He also cited the Freedom of Information Act as a means for transparency. The amendment was released shortly after the hearing, adding to scrutiny of the deal.
