The revised Virginia lawsuit says an agreement shielding President Donald Trump, the Trump Organization and his sons from certain audits is illegal and could force IRS staff to carry out unlawful orders.
A labor union representing Treasury Department and Internal Revenue Service employees asked a federal judge on Thursday to block an agreement that would halt certain ongoing tax audits of President Donald Trump, his sons and the Trump Organization, arguing the arrangement is unlawful and would force career staff to choose between political directives and tax law. The National Treasury Employees Union joined a lawsuit already pending before U.S. District Judge Leonie Brinkema in Alexandria, Virginia, expanding a challenge that had previously focused on a proposed $1.8 billion "Anti-Weaponization Fund" tied to the settlement of Trump's lawsuit over leaked tax returns. The administration has since scrapped that fund after bipartisan criticism, but the union's updated complaint says the tax audit immunity deal remains in effect. The suit argues the arrangement gives Trump and his family an unconstitutional benefit by requiring IRS employees to abandon open audits, and says it violates a law barring presidential interference in tax examinations. Officials have said the agreement applies only to claims open at the time of the settlement and does not shield future tax filings from review. An initial one-page outline signed by acting Attorney General Todd Blanche said the government was "forever barred and precluded" from examining current filings or prosecuting Trump, his sons, the Trump Organization and other "related or affiliated" individuals. Previous reporting by The New York Times and ProPublica suggested the deal could erase more than $100 million in back taxes. The updated lawsuit also asks the court to permanently block any revival of the fund, saying Blanche's formal rescission does not fully prevent future payouts.