Trump Demands $10 Billion From His Own IRS

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President Trump demands $10 billion from his own IRS and Treasury in a bold lawsuit exposing deep government negligence.

Story Highlights

Trump, sons, and Trump Organization sue IRS and Treasury for failing to stop 2019-2020 tax return leaks by rogue contractor Charles Littlejohn.
Unprecedented $10 billion claim dwarfs prior cases, targeting systemic security failures during Trump’s second term.
Treasury Secretary Scott Bessent cancels Booz Allen Hamilton contracts tied to the leaker just days before filing.
Lawsuit filed in Trump-friendly Florida court, assigned to Obama-appointed Judge Kathleen Williams.

Lawsuit Targets IRS Negligence

President Donald Trump, Donald Trump Jr., Eric Trump, and the Trump Organization filed a federal lawsuit on January 29, 2026, in the Southern District of Florida. They seek $10 billion in damages from the IRS and U.S. Treasury Department. The suit accuses these agencies of negligence in preventing former contractor Charles Littlejohn from illegally accessing and leaking confidential tax returns in 2019-2020. Littlejohn shared the data with outlets like The New York Times and ProPublica, revealing Trump’s financial strategies and zero federal income tax in multiple years. This breach caused reputational and financial harm to the plaintiffs. A Trump spokesperson called it a “rogue, politically-motivated” act enabled by IRS failures.

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Timeline of the Illegal Leak

Charles Littlejohn, employed by Booz Allen Hamilton, accessed Trump family and organization tax records from 2017 to 2021. Leaks surfaced in 2019-2020, fueling pre-election attacks. Littlejohn faced charges in September 2023, pleaded guilty, and received a five-year prison sentence in May 2024. The IRS apologized in 2024 to Trump and others, including billionaire Ken Griffin, who sued but later dropped his case after security upgrades. On January 27, 2026, Treasury Secretary Scott Bessent, a Trump appointee, canceled all Booz Allen contracts linked to Littlejohn. The lawsuit followed two days later, emphasizing unresolved agency shortcomings.

Unprecedented Scale and Irony

The $10 billion demand exceeds Trump’s prior $230 million claim against the DOJ for past investigations. Filing in Florida, despite New York headquarters, signals strategic choice for a fairer venue. This marks a rare case of a sitting president suing his own executive agencies, potentially pitting Trump appointees against his personal interests. Defendants face claims of inadequate monitoring and security, allowing leaks to left-leaning media. Such government overreach eroded privacy rights, a core conservative value, and demands accountability to prevent future abuses against patriots.

Potential Impacts on Taxpayers and Reforms

Short-term, the case forces an intra-administration battle, straining IRS and Treasury resources while DOJ may defend the agencies. Long-term, success could spur robust tax data security reforms and deter negligence. Taxpayers risk massive payouts from public funds, highlighting fiscal mismanagement concerns. Broader effects hit contractors like Booz Allen, already facing losses. This lawsuit asserts individual liberty against bureaucratic incompetence, protecting family businesses from politically driven intrusions.