Trump appeals ruling that blocked his IRS deal for tax immunity
Trump appeals ruling that blocked his IRS deal for tax immunity
Aysha Bagchi, USA TODAYFri, July 31, 2026 at 8:04 PM UTC
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President Donald Trump on July 31 appealed a ruling that blocked him from officially using a deal he entered into with the IRS to get tax immunity and to create an "anti-weaponization" fund that could have sent taxpayer dollars to many of his supporters.
Trump, his two oldest sons, his Trump Organization business and two lawyers who were involved in the case all filed the notice of appeal, which asks the U.S. Court of Appeals for the Eleventh Circuit to review the July 13 decision from Florida federal Judge Kathleen M. Williams.
Williams prohibited the three Trumps and the Trump business from using or referring to the deal in any official proceedings, writing that Trump controls the Justice Department, which represented the IRS, and so the agreement was essentially a form of self-dealing.
The lawsuit "was brought for an improper purpose—to gain the imprimatur of judicial legitimacy for a 'settlement' that had no viable basis in law or fact," Williams wrote.
The purported settlement attempted to close a $10 billion lawsuit brought by Trump, his two oldest sons and his business against the IRS, alleging that the agency owed them that sum for failing to prevent a contractor from leaking their tax information.
The Justice Department represented the IRS, agreeing to settle the case by freeing the three Trumps and the Trump business from potential tax liability for past tax years and by creating a nearly $1.8 billion "anti-weaponization" fund that might have given taxpayer dollars to Trump supporters who committed crimes during the Jan. 6, 2021, riot at the U.S. Capitol.
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A spokesperson for Trump's legal team shared a statement with USA TODAY criticizing the IRS and saying the contractor's leak was politically motivated. Trump is pursuing accountability, the spokesperson said.
The tax portion of the settlement could be a huge financial boon to Trump. The New York Times reported in 2020 that he was in a decade-long audit battle with the IRS over a claimed $72.9 million tax refund. Losing that battle could cost him more than $100 million, according to the Times.
In the face of bipartisan congressional backlash, Acting Attorney General Todd Blanche said the DOJ wouldn't move forward with the fund. However, some Republican senators have nonetheless been holding up his nomination to become the permanent, Senate-approved attorney general. They say they want a stronger commitment in writing on the fund, and also want written limits on the immunity the DOJ would give to Trump.
While Williams blocked the Trumps from using or referring to the deal in legal or other official proceedings, it's unclear whether and how that order constrains the DOJ's and IRS' private dealings with the president.
This story has been with additional information.
This article originally appeared on USA TODAY: Trump appeals ruling that blocked his IRS deal for tax immunity
Source: “AOL Breaking”
