Trump tax settlement sparks major political backlash

The U.S. Department of Justice issued an official document permanently prohibiting the Internal Revenue Service (IRS) from conducting any audits or pursuing any legal claims related to past tax matters involving President Donald Trump, his family, and affiliated companies, Mediafax reports.

The order expands on a historic understanding under which Donald Trump agreed on Monday to drop a $10 billion lawsuit against the IRS over the alleged illegal leak of his tax data to the press, CE Report quotes MOLDPRES.

The one-page document, published Tuesday and signed by acting Attorney General Todd Blanche, explicitly states that the U.S. government is “forever prohibited” from reviewing the president’s tax filings prior to the settlement date, as well as any matters “raised or that could have been raised” in connection with ongoing audits.

The move, described as an extraordinary use of executive power, grants Trump and his associates full tax immunity for all ongoing financial matters.

As part of the same settlement agreement, the Department of Justice created a $1.776 billion government fund. The money is intended to compensate individuals who claim they were targeted by politically motivated investigations or prosecutions during the Biden administration.

The announcement sparked strong criticism from Democratic lawmakers and government ethics watchdog organizations, who accused the administration of abuse of power.

Acting Attorney General Todd Blanche defended the decision, arguing that resolving such a large dispute would not make sense if either party could resume litigation the next day.

Photo: White House