DOJ Settlement Bars IRS From Auditing Past Tax Returns of Trump and Family

Published: May 20, 2026 - 9:57 a.m.

By Analese Hartford

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WASHINGTON, D.C. — The Department of Justice released a single-page settlement agreement today that effectively shields President Donald J. Trump and his extensive business empire from past tax scrutiny. Under the terms of the deal, the Internal Revenue Service is now permanently barred from auditing or taking enforcement action against tax returns filed by the president, his family, and his various corporate entities prior to the signing of the document. This agreement is a direct exchange for the president dropping his $10 billion lawsuit against the IRS. It is not only the president who benefits from the arrangement. The language in the settlement is broad, extending the same protections to his children, his parents, his sister, and even "affiliated individuals" who may have been involved in his financial dealings. Acting Attorney General Todd Blanche signed the document on behalf of the DOJ. Blanche previously served as the president's personal defense attorney, a detail that adds complexity to the sudden resolution of the long-standing legal dispute between Trump and the nation's tax agency. The IRS is headquartered at 1111 Constitution Avenue NW in Washington, where officials have historically maintained that audits are conducted based on objective financial triggers. President Trump has often pushed back against this assertion, claiming for years that he was the target of continuous, unfair audits. While this new settlement halts any ongoing or potential reviews of his past filings, it does not grant him a pass for the future. Any tax returns filed after the date of this agreement remain subject to standard IRS protocols and oversight. This move follows a series of high-profile actions involving the legal status of presidential families. Before leaving office, President Biden issued a blanket pardon to his son, Hunter, and several other family members, protecting them from prosecution for non-violent offenses committed between 2014 and the end of his term. Critics of the current administration's IRS deal point to the Biden pardons as a similar use of executive influence, though the DOJ maintains that this settlement is a pragmatic conclusion to a massive, costly lawsuit. The IRS deal arrived just twenty-four hours after the administration announced the creation of a $1.8 billion "Anti-Weaponization Fund." This taxpayer-funded initiative is designed to compensate individuals whom the Department of Justice deems victims of "lawfare" or politically motivated prosecutions by the federal government. A five-person panel will oversee the distribution of these funds, and the members of that panel will be appointed by the Attorney General. Under current rules, the president can remove any member of this panel at any time without providing a specific cause. During a press availability today, the Vice President defended the fund's cost, stating the administration can "walk and chew gum at the same time" by helping the economy while also compensating those mistreated by the government. When asked if the money could potentially go to individuals who assaulted police officers during the January 6 Capitol riot, the Vice President did not rule it out, noting that every application will be reviewed on a case-by-case basis. The fund is currently set to expire at the end of the president's current term. The full text of the one-page IRS settlement is available through the Department of Justice public records office. -------------------- At Cleveland 13 News, we strive to provide accurate, up-to-date, and reliable reporting. If you spot an error, omission, or have information that may need updating, please email us at tips@cleveland13news.com. As a community-driven news network, we appreciate the help of our readers in ensuring the integrity of our reporting.