(From Tax Notes) 'Trump's IRS Audit Deal Denounced as Threat to Law and Code'
"The unprecedented order barring the pursuit of tax claims against President Trump and his affiliates undermines legal accountability and may violate the revenue codes protections against political interference, according to observers."
"The May 19 order, signed by acting U.S. Attorney General Todd Blanche following the dismissal of Trump v. IRS, No. 1:26-cv-20609 (S.D. Fla. 2026), also likely exceeds the scope of what the Justice Department may do, legal and policy professionals told Tax Notes."
'There is no historical precedent for this kind of presidential immunity from the IRS,' Ajay K. Mehrotra of Northwestern University Pritzker School of Law said. 'This is truly unheard of.' "
"Blanche signed the order as part of an addendum to the settlement agreement to end the lawsuit that Trump, his sons Donald Jr. and Eric, and the Trump Organization LLC, initiated January 29 seeking $10 billion in damages stemming from an unauthorized leak of their confidential tax information."
....
"The order permanently stops the United States from pursuing any claims arising from tax returns filed before the settlements effective date against Trump, his family members, affiliated individuals, trusts, and entities."
......
"In a May 21 letter to Treasury Secretary Scott Bessent and Bisignano, Senate Finance Committee ranking member Ron Wyden, D-Ore., and member Elizabeth Warren, D-Mass., called the agreement 'brazen corruption' and demanded answers on how it materialized, to what extent Trump was involved in its discussions, and whether Treasury General Counsel Brian Morrisseys May 18 resignation was related to the agreement."
......
"Judge Kathleen M. Williams of the U.S. District Court for the Southern District of Florida noted in her order closing Trump v. IRS that the settlement agreement hadnt been filed with the court."
.....
"Negotiations involving Trump to end tax audits of himself, his family, and his businesses could violate section 7217, which prohibits the president from directly or indirectly requesting the termination of a tax audit, Brandon DeBot of the Tax Law Center at New York University wrote in a blog post."
......
'Trumps dirty deal has crossed the line into illegality,' Robert Weissman and Lisa Gilbert of Public Citizen said in a statement, adding that the agreement may put IRS officers at risk of breaking the law."
More at link:
https://www.taxnotes.com/featured-news/trumps-irs-audit-deal-denounced-threat-law-and-code/2026/05/22/7w4v1