Trump sues IRS for $10bn over alleged tax return leak, targets U.S. Department of the Treasury as well
On January 29-30, 2026, U.S. President Donald Trump sues IRS, a lawsuit seeking $10 billion against the Internal Revenue Service (IRS) and the U.S. Department of the Treasury over what his legal team calls a massive tax return leak. The complaint says a former IRS contractor secretly shared Trump’s private tax records with media outlets in 2019-2020, and that the agencies failed to stop it.
Trump argues the disclosures caused reputational damage and financial harm to him, his sons, and the Trump Organization.
This is not just another lawsuit, it’s a rare case where a high‑profile political figure is suing federal agencies he once oversaw, raising fresh debates about data security, accountability, and presidential power.
Background: What Happened With the Tax Return Leak?
In late January 2026, U.S. President Donald J. Trump filed a $10 billion lawsuit against the Internal Revenue Service (IRS) and the U.S. Department of the Treasury. The complaint was filed in federal court in Miami and accuses both agencies of failing to prevent the unauthorized disclosure of Trump’s private tax returns to media outlets in 2019 and 2020.
At the heart of the issue is Charles Edward “Chaz” Littlejohn, a former IRS contractor who pleaded guilty in 2023 to unlawfully accessing and leaking confidential tax records, not just Trump’s, but those of many wealthy individuals, to outlets like The New York Times and ProPublica. Littlejohn was later sentenced to five years in prison in 2024 for his role in the breach.
The leaked records revealed previously undisclosed details, including how much Trump paid in federal income tax in certain years, information that became a major subject of public debate and scrutiny.
Who are the Plaintiffs and Defendants?
The lawsuit lists multiple plaintiffs and defendants:
- Plaintiffs:
- Donald J. Trump (U.S. President)
- Donald Trump Jr. and Eric Trump (Trump’s eldest sons)
- The Trump Organization (family business)
- Defendants:
- Internal Revenue Service (IRS)
- U.S. Department of the Treasury
The legal filing claims the agencies failed to take mandatory precautions to protect the tax returns and that their negligence or willful misconduct allowed the disclosures to occur.
Why Trump sues IRS? What are the Main Claims?
Did the Leak Cause Real Harm?
Yes, according to the lawsuit. Trump’s legal team argues that the unauthorized leaks caused:
- Reputational damage
- Financial harm
- Public embarrassment
- Unfair tarnishing of business reputation
- Negative political impact
The complaint claims these effects weren’t hypothetical, but real and measurable, and that the agencies either knew or should have known that insufficient safeguards would lead to such disclosures.
What Law Was Violated?
The leaks reportedly violated IRS Code 6103, one of the strictest confidentiality laws in federal statute, which prohibits unauthorized disclosure of tax return information.
Trump’s complaint argues that the government’s failure to safeguard that information constituted gross negligence or intentional violation of the law.
What Exactly Was Leaked and Who Published It?
The IRS contractor Littlejohn gave sensitive tax data to major media outlets between 2018 and 2020:
- The New York Times published a major 2020 report revealing that Trump paid just $750 in federal income tax in some years, while owing nothing in others, a story that drew global attention.
- ProPublica published an investigative series starting in 2021 showing discrepancies and deeper details.
These disclosures sparked widespread debate about tax transparency for U.S. presidents, campaign ethics, and IRS data security practices.
How Unusual Is Trump’s $10B IRS and Treasury Lawsuit?
It’s very unusual, perhaps unprecedented. A sitting president suing federal agencies within the executive branch over internal government actions raises complex legal questions about:
- Separation of powers
- Presidential oversight
- State sovereign immunity
- Federal data security obligations
Experts say this case could set new precedent for how private citizens, even high‑profile ones, can challenge alleged government mishandling of personal data. The lawsuit comes amid a broader trend of Trump filing multi‑billion‑dollar suits against media outlets and banks.
Trump Tax Return Leak: What Has Happened Since 2019-2020?
In addition to the lawsuit:
- The Treasury Department canceled contracts with Booz Allen Hamilton, the defense consulting firm that employed Littlejohn when the leaks occurred. This included termination of 31 contracts worth an estimated $21 million because of failures to safeguard taxpayer data.
- Treasury Secretary Scott Bessent publicly cited inadequate security measures as the reason for contract cancellations.
These moves highlight how the fallout from the leak continues to affect federal contracting practices and data security policies today.
Could This Lawsuit Change U.S. Data Security Rules?
Possibly. If Trump wins or forces meaningful concessions, federal agencies may be required to tighten protections under IRS code and broader cybersecurity frameworks. This legal battle intersects with rising public concern about digital privacy, government transparency, and the use of AI stock analysis tools in regulatory compliance, a growing field where tech and law increasingly overlap.
What’s Next for Trump’s $10B IRS and Treasury Lawsuit?
The lawsuit will proceed through federal court, and we should expect:
- Defense filings from IRS/Treasury
- Possible motions to dismiss
- Discovery into IRS security practices
- Legal debate over what constitutes quantifiable “harm” from a leaked document
The case could take years, and its outcome may shape how confidential government data is protected, and what rights individuals have when it’s not.
Wrap Up
This $10 billion lawsuit is rare and high-stakes. It challenges federal data security and could reshape how the IRS and Treasury protect sensitive information. The outcome may set a lasting precedent for privacy, accountability, and legal rights.
Frequently Asked Questions (FAQs)
On January 29-30, 2026, Trump filed a $10 billion lawsuit against the IRS and Treasury. He says they failed to stop his private tax returns from being leaked, causing harm.
A former IRS contractor, Charles Littlejohn, leaked Trump’s tax records to media outlets in 2019-2020. He later pleaded guilty and was sentenced for violating tax privacy laws.
The lawsuit is unusual and complex. Courts will review IRS security and harm claims. Its success is uncertain, but it may affect government privacy rules if it proceeds.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
