Trump sues IRS: 5 things to know about $10 billion tax records case

Trump and family sue IRS and Treasury over leaked tax records, seeking $10 billion in damages.

Updated on: Jan 30, 2026, 11:29:48 IST

By Prakriti Deb

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US President Donald Trump, his two eldest sons and the Trump Organization have filed a sweeping lawsuit against the Internal Revenue Service and the US Treasury Department, alleging the government failed to prevent the leak of their confidential tax records.

The plaintiffs are seeking a minimum of $10 billion in damages. (AP)

Here are five key things to know about the case, based on court filings and reporting by CNBC.

1. Who is suing and who is being sued

The plaintiffs in the lawsuit are President Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization, which is run by the two sons. The defendants are the IRS and the Treasury Department. The suit was filed in federal court in Miami, according to CNBC.

2. The lawsuit seeks at least $10 billion

The plaintiffs are seeking a minimum of $10 billion in damages, an unusually large sum for a civil case involving government agencies. The lawsuit alleges that the defendants’ actions caused reputational harm, financial losses, public embarrassment and damage to business standing, court records show.

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3. The case centers on former IRS employee

At the heart of the lawsuit is Charles “Chaz” Littlejohn, a former IRS contractor who pleaded guilty in October 2023 to unlawfully disclosing tax return information. Littlejohn, now serving a five-year prison sentence, admitted to leaking Trump’s tax records to The New York Times and tax information about wealthy individuals to ProPublica.

The suit alleges the IRS and Treasury failed in their duty to safeguard that information in 2019 and 2020.

4. Trump’s legal team blames “rogue” employee

A spokesperson for Trump’s legal team said the IRS “wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization” to media outlets including The New York Times and ProPublica, CNBC reported.

The spokesperson added, “President Trump continues to hold those who wrong America and Americans accountable.”

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5. The lawsuit raises unusual legal questions

It is rare for a sitting president to sue federal agencies that fall under his own administration. The timing has also drawn attention, coming just days after Treasury Secretary Scott Bessent said he canceled the department’s contracts with Booz Allen Hamilton, the consulting firm linked to Littlejohn’s work, according to CNBC.

The case also follows reports that Trump previously sought large financial settlements from the federal government over past investigations.

The lawsuit remains in its early stages, and the IRS and Treasury Department have not yet publicly responded to the claims.

ABOUT THE AUTHOR
Prakriti Deb
Prakriti Deb is a journalist at Hindustan Times Digital, where she is part of the US Desk. She works on stories related to American politics, crime, sports, entertainment and weather. She particularly enjoys covering political developments that have global ripples. Through her work, she aims to break down complex events in a way that feels simple and understandable. Before joining the Hindustan Times, she worked with The Indian Express Digital, where she covered world affairs. She holds a postgraduate degree in Mass Communication with a specialisation in Journalism, along with a bachelor’s degree in English Literature. Outside the newsroom, Prakriti enjoys travelling and stepping out of her comfort zone. She finds her sense of being through storytelling in all its forms, including conversations, painting, theatre, dance and photography. She appreciates discussions that challenge her perspective and help her see the world a little differently.Read More

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