President Donald Trump's $10 billion lawsuit against the IRS over leaked tax information raises questions about his conflict of interest as the leader of the executive branch. The case, which includes Trump's sons Donald Jr. and Eric as plaintiffs, alleges that the leak caused "reputational and financial harm" and is seeking punitive damages.
The lawsuit comes after a former IRS contractor, Charles Edward Littlejohn, was sentenced to five years in prison for leaking tax information about Trump and others to two news outlets between 2018 and 2020. The leaked information included Trump's $750 federal income tax payment the year he entered the White House and no income tax at all some years due to reported colossal losses.
Legal experts say that while Trump may have a legitimate claim against the IRS, his decision to pursue the case raises concerns about his conflict of interest. The IRS Code 6103 provides a legal remedy for individuals whose tax information is leaked, including a minimum of $1,000 per disclosure. However, the amount Trump is seeking as damages is significantly higher.
The leak has also sparked concerns about a potential precedent for other high-net-worth individuals to seek compensation from the government. Tax attorney David Gair said that several clients have already reached out to him about bringing similar lawsuits against the government.
Institute on Taxation and Economic Policy executive director Amy Hanauer argues that a legal remedy has already been provided for the leak, including the contractor's imprisonment, Treasury Department cancellation of contracts with his company, and the IRS's public apology to taxpayers affected by the leak. However, she warns that if the case is settled, it could result in taxpayer dollars being paid out to Trump.
Trump himself claims that he will use any settlement money for charity and does not see a conflict of interest in pursuing the lawsuit while also leading the executive branch.
The lawsuit comes after a former IRS contractor, Charles Edward Littlejohn, was sentenced to five years in prison for leaking tax information about Trump and others to two news outlets between 2018 and 2020. The leaked information included Trump's $750 federal income tax payment the year he entered the White House and no income tax at all some years due to reported colossal losses.
Legal experts say that while Trump may have a legitimate claim against the IRS, his decision to pursue the case raises concerns about his conflict of interest. The IRS Code 6103 provides a legal remedy for individuals whose tax information is leaked, including a minimum of $1,000 per disclosure. However, the amount Trump is seeking as damages is significantly higher.
The leak has also sparked concerns about a potential precedent for other high-net-worth individuals to seek compensation from the government. Tax attorney David Gair said that several clients have already reached out to him about bringing similar lawsuits against the government.
Institute on Taxation and Economic Policy executive director Amy Hanauer argues that a legal remedy has already been provided for the leak, including the contractor's imprisonment, Treasury Department cancellation of contracts with his company, and the IRS's public apology to taxpayers affected by the leak. However, she warns that if the case is settled, it could result in taxpayer dollars being paid out to Trump.
Trump himself claims that he will use any settlement money for charity and does not see a conflict of interest in pursuing the lawsuit while also leading the executive branch.
$10 billion lawsuit over leaked tax info? it's like he's trying to make us believe he didn't hide anything 
meanwhile, a former contractor gets 5 years in prison for doing the same thing and suddenly trump's all like "oh woe is me" 
but let's be real, if this case sets a precedent, high-net-worth individuals are gonna start asking for taxpayer dollars to pay off their own financial messes 
it's just not right.
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... if he can just sue the IRS for being careless with his info, what's to stop other rich folks from doing the same and trying to profit off the gov 
... I'm all about Trump using any settlement money for good, but come on, $10 billion? That's a lot of charity 
...
and now he's asking for $10 BILLION?! that's just wild. i mean i get that the leak was bad, but come on, a lawsuit this big? and what's with him trying to say he'll use the settlement money for charity? like, we all know how that always goes down 
I mean, come on... 10 billion dollars? 
Like, what's next? 
. I mean, who needs tax info when you've got a bankroll that's bigger than some small countries' GDPs? 
And now he's gonna sue the IRS for leaking his tax info and wanting to get $10 billion in damages? That's like me trying to get rich by saying "I'm broke" 
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. And I don’t think anyone can honestly say they wouldn’t be worried if this was one of those big corporations suing the government for damages 
... and now it's gonna cost taxpayers $10 billion 
That would be pretty shady 
! My grandpa used to work for the IRS back in '72 and I remember him talking about how they'd never go after someone like Trump who's got a ton of power. Now it's $10 billion? That's just ridiculous 
. And what about those tax returns he was so secretive about? Maybe they should've leaked too 
?
. And let's not forget, the guy is trying to collect $10 billion from the IRS - that's a whole lotta taxpayer cash 
. Can't have our president and his family profiting off leaks and causing more problems than they solve 
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. Instead, he's trying to strong-arm the IRS into paying him 
. Why should they have to shell out money just because someone else leaked their tax info? It's not fair 
. The government already has ways of dealing with tax leaks, and Trump is trying to exploit the system 