MIAMI — A federal judge is examining whether the resolution of President Donald Trump’s $10 billion lawsuit against the Internal Revenue Service involved deception, collusion or possible fraud on the court.
U.S. District Judge Kathleen M. Williams ordered further briefing on Friday, May 29, 2026, after 35 former federal judges asked her to reconsider the case’s closure. No finding of fraud has been made.
Trump, his two eldest sons and the Trump Organization filed the lawsuit on Thursday, January 29, 2026. They alleged that the IRS and Treasury Department failed to protect confidential tax information accessed and disclosed without authorization by a former IRS contractor.
Trump IRS Settlement Draws Judicial Scrutiny
The court closed the lawsuit on Monday, May 18, after Trump’s lawyers filed a voluntary dismissal. The settlement was not placed on the court record before the case was closed.
The Justice Department subsequently announced an agreement that included a formal apology to the plaintiffs and the creation of a $1.776 billion Anti-Weaponization Fund. Trump and the other plaintiffs were not to receive money from that fund.
A federal judge in Virginia has separately blocked the Trump administration’s $1.8 billion compensation fund connected to the agreement.
A related Justice Department document also stated that the federal government would be barred from pursuing examinations involving tax returns filed by Trump, certain relatives and affiliated businesses before May 18, as well as matters that had been or could have been raised.
The arrangement generated conflict-of-interest concerns because Trump filed the case personally while serving as president over the executive agencies defending it.
Former Judges Allege Court Was Misled
The 35 former judges alleged that the lawsuit and settlement may have been structured to avoid judicial examination. Williams ordered Trump’s personal lawyers to address claims of collusion and deception and whether the court had been the victim of fraud.
Trump’s lawyers filed a 22-page response on Friday, June 12. The former judges submitted a reply supporting their request on Friday, June 19. Williams had not issued a final decision on whether to reopen the underlying case as of Saturday, June 20.
A federal judge in Virginia has separately barred the administration from moving forward with the $1.8 billion compensation fund connected to the agreement. That injunction applies to the fund and does not, by itself, invalidate the separate provisions concerning Trump’s past tax examinations.
The Florida inquiry matters because its outcome could determine whether the original lawsuit was legitimately resolved or whether additional judicial examination of the agreement is required.
