The Trump administration is taking steps to prevent the Internal Revenue Service from pursuing past audits against President Donald Trump, his family, or his businesses. This move could spare him a tax bill estimated at up to $100 million.
New Settlement Bars IRS Investigations
A newly expanded settlement now prohibits the IRS from pursuing any pending investigations into Trump's tax returns. The provision was added to an agreement reached earlier this week, in which the Justice Department resolved a $10 billion lawsuit brought by the President by establishing a $1.8 billion fund for his political allies.
The one-page order, signed by Acting Attorney General Todd Blanche—Trump's former personal attorney—was quietly posted to the Justice Department's website, according to the New York Times.
Previous Audit Could Have Cost $100 Million
A prior IRS audit in 2024 concerning Trump's tax filings could have cost him more than $100 million. It remains unclear whether that examination has concluded or if Trump, his family members, or affiliated entities are subject to any other audits.
Current IRS procedures mandate an annual audit of the President's tax returns. Federal law prohibits the president, vice president, and other White House officials from instructing the IRS on audits. However, the DOJ appears to be exploiting a loophole that allows the attorney general to halt existing tax investigations.
