Former IRS Officials Challenge Trump Tax Settlement as Unconstitutional in Court

A coalition of former IRS and DOJ officials, represented by Democracy Forward, has filed a friend-of-the-court brief in Trump v. IRS, U.S. District Court for the Southern District of Florida (Case No. 1:26-cv-20609), before Judge Kathleen M. Williams. The brief challenges a settlement agreement that would permanently bar the IRS from auditing previously filed tax returns for President Trump, his family, and related entities—a deal the former officials argue is unconstitutional. The amici, who include experts in federal tax law with experience overseeing tax settlements, contend that the settlement violates the Domestic Emoluments Clause (prohibiting the president from receiving any payment from the United States outside congressional compensation), Internal Revenue Code Section 7217 (which bars presidential interference in tax enforcement), and the limits on the Attorney General’s settlement authority under IRC Section 7122. They also allege that the settlement constitutes fraud on the court.

The settlement arises from Trump’s $10 billion lawsuit over leaked tax documents and includes an addendum that has drawn scrutiny. Judge Williams has already reopened the case and launched an inquiry into whether the deal amounts to a 'fraud on the court' and whether it improperly created a $1.8 billion 'anti-weaponization fund.' The amicus brief is one of several filed by House Democrats and ethics groups, all seeking to block a settlement that critics say grants a presidential tax shield, undermining uniform tax enforcement and the rule of law. This challenge provides a concrete legal avenue to contest a policy that, if upheld, would create a privileged class above the tax code—a dangerous precedent that echoes Project 2025’s broader goal of hollowing out IRS enforcement capacity.