DOJ Bars IRS From Auditing Trump, Family, and Businesses in Secret Side Deal

The Justice Department quietly expanded its settlement with Donald Trump to explicitly prohibit the IRS from pursuing any pending tax matters against the president, his family members, or his business entities. The provision — tucked into a one-page document signed by acting Attorney General Todd Blanche and posted without fanfare on the DOJ's website — was released just one day after the broader nine-page settlement agreement was made public Monday.

The broader deal had resolved Trump's January lawsuit against the IRS, which sought at least $10 billion over the leak of his tax returns to journalists during his first term. A former IRS contractor had disclosed tax information to reporters, and Trump argued the agency failed to prevent the breach. As part of dropping that suit, the DOJ agreed to establish a $1.8 billion 'anti-weaponization' compensation fund for individuals Trump believes were wrongly targeted by federal investigations or prosecutions.

The audit shield provision had reportedly been part of internal negotiations — reported last week — but was conspicuously absent from the initial Monday release, raising questions about whether officials were attempting to obscure its inclusion. The financial stakes are significant: a 2024 report found that a failed IRS audit could cost Trump more than $100 million. It remains unclear whether that specific examination has concluded or whether other audits of Trump-affiliated entities are ongoing. IRS rules normally mandate annual audits of sitting presidents.

The deal has triggered sharp bipartisan scrutiny. Brian Morrissey, the Treasury Department's top lawyer, resigned Monday following the settlement announcement — a signal of internal opposition. Democrats hammered Blanche over the compensation fund during a Senate Appropriations subcommittee hearing Tuesday. Federal law bars the president, vice president, and senior executive officers from directing the IRS to open or close specific audits — but the statute appears to carve out an exception for the attorney general, which DOJ officials are apparently exploiting to grant the protection.