Trump, Sons, Organization Sue IRS, Treasury Over Tax Data Leak
Former President Donald Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization have filed a lawsuit against the Internal Revenue Service (IRS) and the U.S. Treasury Department. The suit, filed in federal court in Florida, seeks at least $10 billion in damages, alleging that the agencies failed to prevent the unauthorized disclosure of their confidential tax information by a former IRS contractor.
The Lawsuit Seeks $10 Billion
The legal action targets the IRS and Treasury Department for their alleged failure to safeguard confidential tax records. The plaintiffs assert that the agencies did not prevent the leak of this sensitive financial data, which occurred between 2018 and 2020.
The lawsuit claims that these disclosures resulted in reputational and financial harm, public embarrassment, tarnished business reputations, and negatively impacted public standing and voter support for Mr. Trump in the 2020 presidential election.
Allegations Against Former IRS Contractor Charles Littlejohn
The lawsuit specifically identifies Charles Littlejohn, a former IRS contractor working for Booz Allen Hamilton, as the individual responsible for illegally obtaining and disclosing the tax returns. Littlejohn provided this data to media outlets, including The New York Times and ProPublica.
In 2024, Littlejohn was sentenced to five years in prison after pleading guilty to charges related to the unauthorized disclosure of thousands of tax returns, which included those belonging to Mr. Trump and other prominent individuals such as Jeff Bezos and Elon Musk.
Prosecutors described these leaks as "unparalleled in the IRS's history," noting they violated IRS Code 6103, a strict confidentiality law.
The lawsuit asserts that the IRS is legally responsible for Littlejohn’s actions, citing his staff-like access to confidential tax information and the agency's alleged uncorrected, long-standing security vulnerabilities.
Related Government Actions
The lawsuit follows the U.S. Treasury Department's recent termination of federal contracts, valued at $21 million, with Booz Allen Hamilton.
Treasury Secretary Scott Bessent stated that the firm "failed to implement adequate safeguards to protect sensitive data," including confidential taxpayer information, accessed through its contracts with the IRS.
Background on Trump's Tax Information
The disclosure of Mr. Trump's tax information has been a subject of public interest. During his first presidential term, Mr. Trump's decision not to release his tax returns marked a departure from a long-standing tradition for presidential candidates.
In 2020, The New York Times reported that Mr. Trump did not pay federal income tax for several years prior to that date. ProPublica also published a series in 2021 detailing discrepancies in Mr. Trump's financial records.
Following a legal dispute that reached the Supreme Court, the then-Democratically controlled House Ways and Means Committee publicly released six years of Mr. Trump’s tax returns in 2022.