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The Deputy Attorney General Todd Blanche signed a one-page document on May 20 confirming that Trump reached an agreement with the federal government to end the $10 billion lawsuit Trump filed against the IRS. Under the agreement, the IRS will be “permanently prohibited and barred” from pursuing certain liabilities related to Trump, his businesses, and his family regarding tax returns previously filed. A DOJ spokesperson said the restriction “applies only to any existing audits.”

Confirmation Terms of the Todd Blanche Document

According to the document released by Todd Blanche on Tuesday: “The United States hereby releases, waives, indemnifies, and forever discharges each plaintiff from any and all related liabilities, and hereby permanently prohibits and bars itself from asserting or pursuing any and all claims.” The document concerns Trump himself, Donald Trump Jr., Eric Trump, and the Trump Organization.

Settlement background confirmation:

Cause of the lawsuit: An IRS contractor leaked multiple tax documents to the media and organizations in 2019 and 2020

Time the lawsuit was filed: January 2026

Amount of the lawsuit: $10 billion

Scope of the restriction (confirmed by the DOJ spokesperson): Applies only to any existing audits

Confirmation Details of the $1.8 Billion Anti-Weapons Fund

The agreement announced by the Department of Justice on Monday (May 19) confirmed:

Fund size: $1.8 billion

Use: To compensate individuals who claim they were treated unfairly in government investigations and prosecutions

Decision mechanism: Trump said the payout will be decided by a “committee of four to five people”

Confirmed application case: Former Trump administration official Michael Caputo wrote to Blanche on Tuesday, requesting $2.7 million in compensation from the fund, claiming that the FBI Russia investigation weaponized the government machinery against his family

Reactions Confirmed by the Parties

Former IRS commissioner Danny Werfel (opposed): “Whether you are the President or a regular plumber, people expect the same tax rules and enforcement framework to apply to everyone.”

Democratic Senator Patty Murray (criticized): Accused Trump of setting up a “friend-filling bribery fund—where the benefits go to his own friends, not outsiders.”

Vice President Vance (supporting): “We are trying to compensate those who have been unfairly treated and subjected to injustice by the legal system.”

Senate Republican leader John Thune (reserved): Said there are “many questions” about the agreement between the DOJ and Trump, and that those questions “will continue to exist.”

Frequently Asked Questions

What is the scope of the IRS’s permanent prohibition on pursuing claims?

According to confirmation from a DOJ spokesperson to the UK’s Financial Times, the decision to prohibit pursuing is “only applicable to any existing audits,” and does not cover Trump’s future tax filings or other matters outside any existing-audit scope.

Why did the former IRS commissioner say this settlement is unprecedented?

Former IRS commissioner Danny Werfel said he “does not know of any precedent” in which the IRS would agree in advance to permanently waive review of a person’s or company’s previously filed tax returns, emphasizing that the tax enforcement framework should be consistent for all taxpayers.

Will Trump or his family receive compensation from the anti-weaponization fund?

Acting Deputy Attorney General Blanche said at the Tuesday hearing that Trump will not take money from the fund. Trump said he is “almost unaware” of the fund’s establishment and stated that the compensation will be decided by a committee of four to five people.