Federal Judge Sanctions Trump's Lawyers Over IRS Settlement
A federal judge has sanctioned the lawyers behind President Trump's settlement with the IRS, stating that the case was improperly used to justify the settlement fund. The judge found that the lawsuit was not about resolving a legal issue, but rather an attempt to use the court to provide legitimacy to an agreement granting Trump audit immunity and creating a fund.
U.S. District Judge Kathleen Williams sanctioned the lawyers, deeming the lawsuit to have been improperly employed to justify the $1.776 billion settlement fund. The fund was created as part of a settlement between Trump and the IRS, which included an agreement granting Trump audit immunity. Judge Williams referred one lawyer to the Florida Bar and sent her order to the New York and D.C. bars where other lawyers are members.
The lawsuit was originally filed by Trump, his two eldest sons, and the Trump Organization in January over the 2019 leak of his tax returns by an IRS contractor. The suit was dropped in May, and the DOJ then announced the nearly $1.8 billion fund, a formal apology, and a bar on the IRS auditing him. Judge Williams rejected the argument that she no longer had jurisdiction over the case after it was dropped, ruling that a court keeps power over collateral issues like sanctions even after a case ends.
The sanctions imposed by Judge Williams include blocking one attorney from practicing in the Southern District of Florida for a year and barring Trump and the government from calling the deal to end the lawsuit a settlement. The outside groups and former judges who challenged the deal have two weeks to ask that Trump and his lawyers cover their attorneys' fees.
Go Deeper
What was the purpose of the lawsuit filed by Trump and his family?
The lawsuit was filed over the 2019 leak of Trump's tax returns by an IRS contractor, but Judge Williams found that it was improperly used to justify the settlement fund and grant Trump audit immunity.
How much was the settlement fund?
The settlement fund was $1.776 billion, which was created as part of the agreement between Trump and the IRS.
What were the sanctions imposed by Judge Williams?
The sanctions included blocking one attorney from practicing in the Southern District of Florida for a year, barring Trump and the government from calling the deal to end the lawsuit a settlement, and imposing non-monetary sanctions.
What is the current status of the settlement fund?
The administration abandoned the fund in June under bipartisan pressure, but the audit-immunity provision remains in place.
What was the response from Trump's legal team to the judge's ruling?
A spokesperson for Trump's legal team stated that the IRS wrongly allowed a rogue employee to leak private information about Trump, his family, and the Trump Organization, but did not directly address the judge's ruling on the sanctions.
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