{"id":2629201,"date":"2026-07-13T15:21:58","date_gmt":"2026-07-13T19:21:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/judge-voids-trump-irs-immunity-deal-and-imposes-sanctions\/"},"modified":"2026-07-13T15:23:42","modified_gmt":"2026-07-13T19:23:42","slug":"judge-voids-trump-irs-immunity-deal-and-imposes-sanctions","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/judge-voids-trump-irs-immunity-deal-and-imposes-sanctions\/","title":{"rendered":"Judge voids Trump IRS immunity deal and imposes sanctions"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fjudge-voids-trump-irs-immunity-deal-and-imposes-sanctions%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2629201&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A federal judge in Florida has invalidated President Donald Trump\u2019s settlement with the IRS regarding his past tax filings, prohibiting him from citing this case in future efforts to avoid scrutiny. U.S. District judge Kathleen Williams concluded that Trump and the IRS were not genuinely adversarial during the settlement, which resolved a $10 billion lawsuit filed by Trump. She also ordered sanctions against attorneys involved. The case centered around leaks of Trump\u2019s tax records by former contractor Charles Littlejohn, who pleaded guilty to illegally disclosing confidential IRS information. Williams noted the lack of true adversity as the settlement appeared to be motivated for legitimacy rather than legal merit, especially as Trump\u2019s claims arose after he returned to the White House and appointed allies. The original settlement promised Trump and his children immunity from audits over past filings, but this benefit is now revoked due to the judge\u2019s ruling. The department of Justice had proposed establishing a $1.776 billion fund for victims of alleged government weaponization, but that plan has been effectively halted following judicial and political opposition. The ruling suggests that the management&#8217;s effort to revive this fund may <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/doj-looking-to-ban-transgender-people-from-owning-firearms\/\" title=\"... looking to ban transgender people from owning firearms\">face notable legal challenges<\/a>. The case drew support from amicus briefs opposing the settlement, and it remains uncertain whether the DOJ will appeal the decision.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\">A federal judge in <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/florida\/\">Florida<\/a> on Monday dealt a blow to President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\">Donald Trump<\/a> over his landmark settlement with the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/irs\/\">Internal Revenue Service<\/a>, barring him from citing the case in any future attempt to avoid scrutiny over his past tax filings.<\/p>\n<p class=\"wp-block-paragraph\">U.S. District Judge Kathleen Williams, an appointee of former President Barack Obama, found that Trump and the IRS were not truly adverse to each other when the tax agency and the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/department-of-justice\/\">Justice Department<\/a> agreed to settle a $10 billion <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.flsd.706172\/gov.uscourts.flsd.706172.1.0_4.pdf\">lawsuit filed by Trump on Jan. 29<\/a>. She also ordered sanctions for attorneys involved in the lawsuit.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/4646233\/epstein-survivors-letters-senate-judiciary-oppose-blanche-nomination\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Epstein survivors send letters to Senate Judiciary opposing Todd Blanche nomination<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/4645060\/hunter-biden-win-defamation-case\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Hunter Biden wins $1.7 million defamation case over Iran bribery allegations<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/4644966\/doj-subpoena-new-york-times-air-force-one\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>DOJ subpoenas New York Times journalists involved in Air Force One reporting<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<figure class=\"wp-block-image size-large\">This April 13, 2014 file photo shows the headquarters of the Internal Revenue Service in Washington. The Trump administration has settled lawsuits with dozens of tea party groups who said they received extra, often burdensome scrutiny when applying for tax-exempt status.  (AP Photo\/J. David Ake)<\/p>\n<p>&#8221; data-large-file=&#8221;https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/\/2026\/07\/localimages\/AP17299419944783.jpg?w=696&#8243; &#8220;https:><figcaption class=\"wp-element-caption\">This April 13, 2014 file photo shows the headquarters of the Internal Revenue Service in Washington. (AP Photo\/J. David Ake)<\/figcaption><\/figure>\n<p class=\"wp-block-paragraph\">\u201cCourt finds that this matter was brought for an improper purpose\u2014to gain the imprimatur of judicial legitimacy for a \u2018settlement\u2019 that had no viable basis in law or fact,\u201d Williams <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.flsd.706172\/gov.uscourts.flsd.706172.106.0.pdf\">wrote in her 56-page decision<\/a>.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-1\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-1\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-15\" data-wex-ad=\"art-dsk-inart-1\"><\/div>\n<\/div>\n<\/div>\n<div class=\"article-paywall\">\n<p class=\"wp-block-paragraph\">The underlying leak at the center of Trump\u2019s lawsuit traces back to former Booz Allen Hamilton contractor <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/2579699\/ex-irs-contractor-who-leaked-trumps-tax-returns-pleads-guilty\/\">Charles Littlejohn<\/a>, who pleaded guilty in 2023 to unlawfully disclosing Trump\u2019s tax records and thousands of other confidential IRS files. Prosecutors said Littlejohn sought access to Trump\u2019s returns because he viewed the president as \u201cdangerous and a threat to democracy.\u201d He <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-and-his-sons-forever-exempt-from-tax-audits-under-irs-addendum\/\" title=\"... and his sons &#039;forever&#039; exempt from ... under ... addendum\">previously leaked tax information connected<\/a> to thousands of wealthy individuals to <em>ProPublica<\/em>.<\/p>\n<p class=\"wp-block-paragraph\">Despite Littlejohn\u2019s wrongdoing, Williams nevertheless found that there was not a sincere adversity between the plaintiffs \u2014 Trump and his adult children \u2014 and the IRS, based on her view that the president\u2019s personal interests and his administration\u2019s priorities were inextricably linked.<\/p>\n<p class=\"wp-block-paragraph\">\u201cTrump did not pursue his claims until he once again occupied the White House and had appointed his former lawyer, and the former lawyer of persons who are putative beneficiaries of the \u2018Anti-Weaponization Fund\u2019 to prominent positions,\u201d wrote Williams, who <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/4588170\/judge-reopens-trump-irs-lawsuit-over-anti-weaponization-fund\/\">reopened the lawsuit on May 29<\/a> to investigate whether the administration improperly handled the settlement.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-2\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-2\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-16\" data-wex-ad=\"art-dsk-inart-2\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">The result of the settlement initially came with the stipulation that Trump and his adult children <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/4575516\/trump-sons-exempt-tax-audits-irs\/#google_vignette\">would be \u201cforever\u201d exempt<\/a> from tax audits over their past filings, though it would not immunize them from audits over future filings. Barring any overturning of Williams\u2019s decision, that benefit no longer stands following her Monday ruling.<\/p>\n<p class=\"wp-block-paragraph\">Following the May settlement, rather than seek to collect the original request of $10 billion from the IRS, the DOJ instead proposed the formation of a $1.776 billion fund that would be subject to a public application process for those who believe the government was \u201cweaponized\u201d against them to submit requests for possible compensation. That plan was quickly upended earlier this summer when plaintiffs sued to stop it, and Democrats threatened to hold up <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/department-of-homeland-security\/\" type=\"post_tag\" id=\"3083\">Department of Homeland Security<\/a> funding unless the DOJ agreed to cancel the planned fund. Congressional Republicans also expressed discomfort with the plan.<\/p>\n<p class=\"wp-block-paragraph\">Acting Attorney General <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/todd-blanche\/\">Todd Blanche<\/a> testified to Congress last month that the fund would not move forward, though <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/4616938\/doj-not-sign-declaration-anti-weaponization-fund\/\">he has refused multiple requests<\/a> to put that commitment in writing, which the DOJ has argued is unnecessary given the attorney general\u2019s clear and public word.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-3\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-3\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-17\" data-wex-ad=\"art-dsk-inart-3\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">However, Williams pointed out that Blanche\u2019s own admission that the weaponization fund would not be \u201cmoving forward\u201d was a tacit admission that the IRS and Trump were never actually adverse to one another, a requirement for bringing legitimate cases under the Supreme Court\u2019s <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.law.cornell.edu\/constitution-conan\/article-3\/section-2\/clause-1\/early-adversity-doctrine\">so-called \u201cadversity doctrine\u201d<\/a> dating back to the mid-1800s.<\/p>\n<p class=\"wp-block-paragraph\">The DOJ is still entrenched in two other lawsuits over the weaponization fund, though Williams\u2019s decision further increases the likelihood that the administration will struggle to revive its plan to pay victims of government abuse or improper prosecutions.<\/p>\n<p class=\"wp-block-paragraph\">The settlement was met with great opposition in amicus curiae, or \u201cfriend of the court\u201d briefs, submitted to the docket. One of those briefs included 35 judges represented by Democracy Defenders Action, a left-of-center organization that opposed the terms of the settlement.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-4\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-4\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-25\" data-wex-ad=\"art-dsk-inart-4\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\"><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/4629304\/raskin-files-petition-kill-trump-lawfare-fund\/\">JAMIE RASKIN FILES PETITION TO KILL TRUMP\u2019S $1.8 BILLION LAWFARE FUND<\/a><\/strong><\/p>\n<p class=\"wp-block-paragraph\">It is not immediately clear if the DOJ plans to appeal the decision on Monday.<\/p>\n<p class=\"wp-block-paragraph\">The <em>Washington Examiner <\/em>contacted a representative for the department.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-5\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-5\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-26\" data-wex-ad=\"art-dsk-inart-5\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Judge blocks Trump from citing IRS settlement in future tax cases<\/p>\n","protected":false},"author":2633,"featured_media":2629202,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/07\/Trump-Iran.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[8362,50433,3634],"class_list":["post-2629201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-irs","tag-judge-2","tag-trump"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/07\/Trump-Iran.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2629201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2633"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2629201"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2629201\/revisions"}],"predecessor-version":[{"id":2629205,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2629201\/revisions\/2629205"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2629202"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2629201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2629201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2629201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}