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US government agrees to drop tax claims against Trump

WASHINGTON (AP) — The U.S. government will permanently drop tax claims against President Donald Trump, according to a settlement document made public Tuesday, in an extraordinary use of executive power that could effectively help shield the president from further examination of his finances and legal conduct.

As part of the settlement deal meant to resolve Trump’s $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns, the U.S. is “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump organization’s current tax examinations, according to a one-page document posted to the Justice Department’s website.

The government is also barred from looking into Trump’s family, affiliates and others, according to the document, which is signed by acting Attorney General Todd Blanche. That document is a separate addendum from the original settlement announced Monday, and was quietly added to the Justice Department website on Tuesday.

The White House referred Associated Press inquiries to the Justice Department, and the U.S. Treasury did not respond to Associated Press requests for comment.

The settlement refers only to existing audits, not future examinations, the Justice Department said in response to a request for comment on the expanded settlement.

The move comes after the Trump administration announced Monday, as part of the lawsuit settlement, the creation of a nearly $1.8 billion fund to compensate allies of the Republican president who believe they have been unjustly investigated and prosecuted, an arrangement that Democrats and government watchdogs criticize as “corrupt” and unconstitutional.

The “Anti-Weaponization Fund” of $1.776 billion will allow people who believe they were targeted for prosecution for political purposes, including by the Biden administration Justice Department, to apply for payouts, creating what Blanche called “a lawful process for victims of lawfare and weaponization to be heard and seek redress.”

Trump told reporters at the White House on Monday that the fund is dedicated to “reimbursing people who were horribly treated.”

Daniel Werfel, a former IRS Commissioner during the Biden administration, said he was unaware of instances where the IRS agreed in advance “to permanently forgo examination of previously filed tax returns for a specific person or business.”

He said the arrangement granted Trump and his family separate tax rules from other Americans.

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