A one-page document signed by U.S. Acting Attorney General Todd Blanche on May 20 confirms that Trump and the federal government reached an agreement to end Trump’s $10 billion lawsuit against the IRS. Under the agreement, the IRS will be “permanently barred from and prohibited” from pursuing certain liabilities related to Trump, his businesses, and family members and prior filed tax returns; a DOJ spokesperson said the restriction “only applies to any existing audits.”
## Confirmation Terms of the Todd Blanche Document
The document released by Todd Blanche on Tuesday confirmed: “The United States hereby releases, waives, discharges, and permanently exempts the relevant liabilities of each plaintiff, and hereby permanently prohibits and stops itself from prosecuting or pursuing any and all claims.” The document covers Trump himself, Donald Trump Jr., Eric Trump, and the Trump Organization.
Settlement Background Confirmed:
Cause of the Lawsuit: A former IRS contractor leaked multiple tax documents to the media and organizations in 2019 and 2020
When the Lawsuit Was Filed: January 2026
Lawsuit Amount: $10 billion
Scope of the Restriction (Confirmed by DOJ Spokesperson): Only applies to any existing audits
## Confirmation Details of the $1.8 Billion Anti-Weaponization Fund
According to the agreement confirmed by the Department of Justice on Monday (May 19):
Fund Size: $1.8 billion
Purpose: To compensate people who claim they were treated unfairly in government investigations and prosecutions
Decision Mechanism: Trump said payouts would be decided by a “committee of four to five people”
Application Case Confirmed: Former Trump administration official Michael Caputo sent a letter to Blanche on Tuesday requesting $2.7 million in compensation from the fund, claiming that the FBI’s Russia investigation weaponized the government machinery against his family
## Reactions from the Parties Involved
Former IRS Commissioner Danny Werfel (opposed): “Whether you’re a president or just a regular plumber, people expect the same tax rules and enforcement framework to apply to everyone.”
Democratic Sen. Patty Murray (critical): Accused Trump of setting up a “pay-to-play bribe fund that keeps the profits among his own friends.”
Vice President JD Vance (supportive): “We’re trying to compensate those who were treated unfairly and treated unfairly by the legal system.”
Senate Republican leader John Thune (reservations): Said there are “many questions” about the agreement between DOJ and Trump, and that those questions “will continue to exist.”
## FAQ
#### What is the scope of the IRS’s permanent ban on追查?
According to a DOJ spokesperson’s confirmation to the Financial Times in the UK, the decision to bar such pursuit “only applies to any existing audits,” and does not cover Trump’s future tax filings or other matters outside the category of existing audits.
#### Why did the former IRS commissioner say this settlement is unprecedented?
Former IRS Commissioner Danny Werfel said he “doesn’t know of any precedent where the IRS would agree in advance to permanently give up an examination of a previously filed tax return for a particular person or business,” stressing that the tax enforcement framework should remain consistent for all taxpayers.
#### Will Trump or his family receive compensation from the anti-weaponization fund?
At Tuesday’s hearing, Acting Attorney General Blanche said Trump will not take money from the fund. Trump said he was “almost completely unaware” of the fund’s creation and said payouts will be decided by a committee of four to five people.
