Trump Reaches Settlement With U.S. Government; IRS Permanently Restricted From Auditing Past Returns on May 20

According to Justice Department documents released on May 20, Trump and the federal government reached a settlement agreement terminating a $10 billion lawsuit filed by Trump and his businesses against the Internal Revenue Service (IRS), with the agency now permanently prohibited from conducting further audits or reviews of Trump, his enterprises, and his family's previously submitted tax returns within the existing audit scope.

The U.S. government agreed to establish an $1.8 billion compensation fund for individuals or groups claiming improper treatment during government investigations. A former IRS director noted there is no precedent for a tax agency permanently relinquishing review rights over a specific individual or business's historical filings, emphasizing that tax enforcement principles should apply consistently to all taxpayers.