Former U.S. President Donald Trump has filed an unprecedented lawsuit seeking $10 billion in damages against the Internal Revenue Service (IRS) and the U.S. Treasury Department, alleging the agencies failed to protect his confidential tax returns from being leaked to the media.
What the Lawsuit Says
- Trump, along with his sons Donald Trump Jr. and Eric Trump and the Trump Organization, filed the case in federal court in Miami on January 29, 2026, claiming that the government failed to safeguard his tax returns and related data from unauthorized access and disclosure.
- The core allegation is that a former IRS contractor, Charles Edward Littlejohn, illegally leaked Trump’s tax information to outlets like The New York Times and ProPublica during his presidency — disclosures Trump says caused severe reputational, political, and financial harm.
- Trump’s legal filing asserts that the IRS and Treasury had a duty to prevent the breach and failed to implement adequate security, employee screening, and safeguards — making them liable.
The Underlying Leak
- Littlejohn, who was employed as a contractor with the defense firm Booz Allen Hamilton while working for the IRS, previously pleaded guilty and received a five-year prison sentence for the unauthorized tax data disclosure. The leaked records were part of one of the largest breaches of IRS data in history, affecting Trump and many other wealthy individuals.
- The lawsuit claims this leak was not just a technical failure, but that it exposed sensitive financial information to so-called “left-leaning” media outlets, harming Trump’s public image and business interests.
Why It’s a Big Deal
- A $10 billion federal lawsuit against two major government agencies — especially ones within the executive branch — is extremely rare and politically explosive. It places the president in a position of accusing his own administration’s departments of negligence or misconduct.
- The case is expected to draw heavy scrutiny for potential constitutional and legal implications, especially regarding data privacy, taxpayer confidentiality, and government accountability.
Context and Broader Impact
- The leak that inspired this lawsuit was part of a larger story that revealed how little Trump paid in federal income taxes over many years — a subject of national debate and political controversy since it was first reported.
- In response to the scandal, the U.S. Treasury recently cancelled contracts with Booz Allen Hamilton, the firm that employed Littlejohn, citing failures to safeguard taxpayer records.
What’s Next
- The government agencies named in the lawsuit are expected to respond with legal filings defending their conduct and challenging the assertions and damage estimates.
- Legal observers note this could set a major precedent regarding how far individuals — even high-profile ones — can hold federal agencies accountable for data protection and privacy.
- The case will likely play out over months or years as it moves through federal courts.
Takeaway: Trump’s $10 billion lawsuit against the IRS and Treasury over tax return leaks is a high-stakes legal battle that blends privacy, politics, government accountability, and presidential history. With its unprecedented size and implications, it’s shaping up to be one of the most watched legal dramas in U.S. political cycles.
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