On January 29, 2026, President Trump, his two sons, and the Trump Organization filed a $10 billion lawsuit against the IRS and Treasury Department—agencies he controls as president—over the leak of his tax returns by Charles Littlejohn, who revealed Trump paid little to no taxes for years. One week later, on February 5, Trump claimed on NBC that the lawsuit has 'essentially been won“ and, ”I guess I won a lot of money"—despite no court ruling.
Trump explicitly stated he would 'work out a settlement with myself,“ openly admitting he will use presidential power to pay himself taxpayer money. Critics called it 'naked corruption.” Democrats introduced legislation to impose 100% tax on settlements paid to sitting presidents. This represents brazen self-dealing: a president suing agencies he controls, claiming victory before any ruling, and openly planning to settle with himself for billions in taxpayer funds.
By April 2026, the DOJ was in chaos over the case. AG Bondi and Deputy AG Blanche — both former Trump personal attorneys — face insurmountable conflicts of interest. Insiders describe “frenzied debate” over how to respond, acknowledging the case has “clear flaws” that would not survive court scrutiny. The 60-day response deadline is April 19. Proposed solutions include delaying proceedings until Trump leaves office or asking the judge to appoint independent counsel. Former DOJ tax attorney Charles Duffy called it “outrageous that the head of the executive would shake down an agency like this.”