- United States
- Nev.
- Letter
Do not allow any settlement in Trump's $10 billion lawsuit against the federal government. Not a partial deal, not a negotiated compromise — this case must be dismissed in its entirety. The Tax Law Center's May 13 analysis by Brandon DeBot and Dave Hubbert makes clear this isn't just bad policy — it may be criminal.
Section 7217 of the Internal Revenue Code explicitly prohibits the President and any Executive Office employee from directly or indirectly requesting that the IRS terminate an ongoing audit or investigation. Violation carries up to five years in prison. DOJ's settlement authority doesn't extend to IRS audit decisions — those require separate closing agreements signed by the taxpayer and properly authorized IRS officials.
Congress strengthened these protections on a bipartisan basis after Nixon tried to weaponize the IRS against political enemies. These safeguards exist for exactly this moment. Demand that oversight bodies scrutinize any settlement terms before they're finalized, and make clear that IRS officials have a legal obligation to report any prohibited requests to TIGTA — and that failure to do so is itself a crime.