US President Donald Trump (R) and his son Eric Trump (L) depart the White House en route to Charlottesville, Virginia on April 10, 2026, in Washington DC.
Celal Gunes | Anadolu | Getty Images
President Donald Trump, his two eldest sons, and the Trump Organization dropped their $10 billion lawsuit against the Internal Revenue Service on Monday, according to a court filing in Miami federal court.
The filing did not say what led to the surprising move, which came on the heels of controversy over reports that the Department of Justice was negotiating a settlement with Trump that could see the federal government pay $1.7 billion toward a fund that could be used to compensate allies of Trump who allege wrongful treatment by the Biden administration.
Democratic members of Congress said that would be a “slush fund.”
CNBC has asked the DOJ if Trump’s dismissal of the suit is being made in conjunction with a settlement by the government of his claims outside of court.
The court filing on Monday said Donald Trump, Donald Trump Jr., Eric Trump, and The Trump were voluntarily dismissing the lawsuit against the IRS “with prejudice.”
With prejudice means the plaintiffs can not renew the same claims in another civil complaint.
Trump sued the IRS in late January over the leak of his tax information by an IRS employee Charles “Chaz” Littlejohn in 2019 and 2020.
A spokesman for Trump’s attorneys had no immediate comment on the dismissal.
The IRS did not immediately respond to a request for comment.
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