A US federal judge has voided a legal agreement between President Donald Trump and federal agencies that granted him immunity from tax audits and allowed his administration to create a now-abandoned $1.8 billion 'anti-weaponization' fund.
US District Judge Kathleen Williams ruled Monday that Trump's $10 billion lawsuit against the Internal Revenue Service (IRS) was filed for an improper purpose. She also referred a Trump lawyer to state authorities to determine whether ethics rules were violated.
In her ruling, Williams characterized Trump's lawsuit as 'far from a dispute between two opposing sides,' describing it as an action carried out by lawyers with ties to Trump and those who claimed to have been government targets.
Williams wrote the settlement was an attempt to 'provide some legitimacy to an agreement to confer immunity to people and entities affiliated with the President and to earmark billions of dollars from American taxpayers to redress grievances not defined in the law.'
The decision also prevents Trump and his sons from citing the settlement in future legal proceedings, potentially allowing the IRS to proceed with audits of Trump's tax claims.
The initial lawsuit stemmed from a leak of Trump's tax information by former IRS contractor Charles Littlejohn. Before the 2020 election, the leaked data formed the basis of a New York Times investigation revealing Trump paid only $750 in federal income taxes in 2016 and no taxes in 10 of the previous 15 years.
Williams noted that 'President Trump did not pursue his claims until he once again occupied the White House and had appointed his former lawyer to prominent positions in the DOJ.' She added, 'It is risible to suggest that there was ever adverseness between the Parties.'
Tax Law Center Policy Director Brandon DeBot called the agreement a 'sweetheart deal' for Trump that 'went against the tax system's protections against political interference.'
The 'anti-weaponization' fund plan was abandoned in early June after another judge temporarily blocked its implementation. The plan had drawn criticism from Democrats and some Republicans, who argued it could result in payments to individuals prosecuted for the January 6, 2021 Capitol riot.
Source: www.bbc.co.uk