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ABC Reports U.S. Justice Department Deal on IRS Review of Trump Tax Returns

ABC Reports U.S. Justice Department Deal on IRS Review of Trump Tax Returns

According to ABC and a separate post, a DOJ settlement would block IRS review of past Trump-related tax returns as Trump drops an IRS lawsuit and a nearly $1.8 billion compensation fund advances.

Fact Check
The claim is strongly supported by multiple independent, authoritative sources. Axios and CNN both confirm on May 18, 2026 that Trump, his sons, and the Trump Organization voluntarily dismissed their $10 billion IRS lawsuit with prejudice, per court documents. The compensation fund is confirmed at $1.776 billion (rounded to ~$1.8 billion in the claim's headline), funded by the Treasury's Judgment Fund and signed by acting AG Todd Blanche. The only minor imprecision is the fund amount: $1.776 billion vs. the claim's '$1.8 billion,' which is a standard rounding in news headlines. All core elements of the claim are verified.
Summary

ABC reported on May 19 that the U.S. Justice Department signed an agreement to permanently block the Internal Revenue Service from reviewing past tax returns filed by President Donald Trump, his family, and companies. A separate post characterizes the arrangement as permanent IRS audit immunity for Trump, his family, and the Trump Organization following leaked tax returns, but provides no supporting documentation beyond the claim. Court documents cited in the older topic also show Trump is dropping his $10 billion lawsuit against the IRS, a move described as clearing the way for a nearly $1.8 billion compensation fund. The topics differ on who the fund would benefit: one describes compensation for people who say they were harmed, while the other says it is intended for Trump allies tied to alleged unjust prosecution.

Terms & Concepts
  • Internal Revenue Service: The U.S. federal tax agency responsible for administering and enforcing tax laws.
  • IRS audit: A review by the Internal Revenue Service of tax filings, records and compliance with U.S. tax law.
  • Compensation fund: A pool of money set aside to pay people who claim they suffered losses or harm from a specific action or event.