President Donald Trump has filed a $10 billion lawsuit against the Internal Revenue Service and Treasury Department, alleging that the agencies failed to prevent the leak of his confidential tax information to media outlets. The legal action, initiated in a federal court in Miami on Thursday, seeks damages for reputational and financial harm claimed by Trump, his sons Eric and Donald Jr., and the Trump Organization.
The lawsuit centers on the unauthorized disclosure of tax records between 2018 and 2020, which were provided to news organizations like The New York Times and ProPublica by former IRS contractor Charles Littlejohn. Littlejohn, who worked for the consulting firm Booz Allen Hamilton, pleaded guilty in 2024 and was sentenced to five years in prison for stealing and leaking tax data of Trump and other wealthy individuals. Prosecutors described this breach as unprecedented in IRS history, violating strict federal confidentiality laws.
According to the filing, the leak revealed that Trump paid minimal federal income taxes, including reports of $750 in 2016 and 2021, during times when he declined to publicly release his tax returns as a presidential candidate. The suit argues that this disclosure caused significant reputational damage, public embarrassment, and negatively impacted Trump’s electoral support in the 2020 election, contributing to his defeat.
In response to the scandal, the Treasury Department recently terminated all contracts with Booz Allen Hamilton, citing the firm’s inadequate safeguards for sensitive data. Treasury Secretary Scott Bessent stated that the company failed to protect confidential taxpayer information, highlighting systemic vulnerabilities. However, the lawsuit directly targets the federal agencies, alleging they acted negligently or with gross negligence in handling the data.
This case is part of a series of legal battles Trump has pursued since returning to office, including lawsuits against financial institutions and media outlets over perceived political motivations. Earlier this month, he sued JPMorgan Chase for $5 billion, and he has previously filed claims against The New York Times and The Wall Street Journal, often framing them as efforts to combat bias.
The outcome of this lawsuit could influence future policies on taxpayer privacy and government accountability. If successful, it may set a precedent for holding agencies liable for data breaches, potentially leading to stricter data protection measures. Conversely, a dismissal could underscore the legal hurdles in such claims, especially in politically charged contexts.
As the case moves forward, it will likely draw intense scrutiny due to Trump’s prominence and the sensitive nature of the information involved. The IRS and Treasury Department have not yet publicly commented, but their legal responses will be critical in shaping the proceedings and broader implications for federal data security.
