President Donald Trump, together with his sons Donald Trump Jr. and Eric Trump and the Trump Organization, has filed a significant legal claim against the Internal Revenue Service (IRS) and the U.S. Treasury Department. The complaint seeks damages amounting to $10 billion, citing the unauthorized leak of confidential tax records as the central grievance.
This lawsuit was formally submitted to a federal court in Miami and centers on the alleged failure of the IRS and Treasury to safeguard sensitive taxpayer data against unauthorized disclosure by a former IRS employee, Charles "Chaz" Littlejohn. Littlejohn's disclosures reportedly took place during the years 2019 and 2020.
Littlejohn, who is currently serving a five-year prison sentence, pled guilty in October 2023 to charges of illegally leaking tax return information. His admissions include unlawfully sharing President Trump's tax records with The New York Times, as well as distributing private data on affluent individuals to the investigative journalism outlet ProPublica.
The lawsuit further details that during a deposition in 2024, Littlejohn acknowledged having provided Trump-related business information to ProPublica. The suit contends that the publication's subsequent reporting wrongly implied fraudulent elements in Trump's tax filings.
According to the complaint, these actions inflicted substantial reputational and financial harm on the plaintiffs. The legal documents suggest that the public release of private tax details resulted in "public embarrassment," adversely affecting the business stature and overall public image of the Trump family and their business interests.
Despite repeated attempts, neither the IRS nor the Treasury Department have issued statements in response to these allegations.
The current lawsuit emerges against the backdrop of recent turmoil in data security matters involving federal agencies. Notably, Treasury Secretary Scott Bessent took the extraordinary measure of terminating all contracts with Booz Allen Hamilton, a management consulting firm, after citing the company’s inability to adequately protect sensitive taxpayer information. This decision followed reports of a previous breach exposing confidential tax data.
Moreover, earlier developments in 2023 saw President Trump publicly state his intention to seek $230 million from the Department of Justice over investigations tied to the 2022 FBI search of his Mar-a-Lago residence and inquiries into alleged ties between his 2016 campaign and Russia. Trump acknowledged a lack of detailed knowledge on the claims and indicated that he had not communicated directly with officials about the amount, while emphasizing his belief in substantial owed compensation.
Additionally, in the same month, Trump announced plans to pursue legal action against JPMorgan Chase after the bank abruptly closed his accounts. The closures, attributed to events following the January 6, 2021, Capitol riot, were characterized by Trump as improper "debanking."
These concurrent legal challenges highlight ongoing litigation efforts by Trump and his associated business entities, addressing disputes involving sensitive information leaks and financial institution actions.
While the present lawsuit focuses primarily on alleged failures to protect confidential tax records and resulting damage, it also fits within a larger context of scrutiny regarding data security among contractors managing taxpayer information and the broader financial repercussions experienced by the Trump family.
Given these circumstances, the litigation may prompt further examination of the safeguards employed by government agencies and their contractors to prevent unauthorized dissemination of private data, especially concerning high-profile figures and entities.
At this juncture, the full ramifications of these claims remain pending judicial review, and responses from the IRS and Treasury Departments have yet to be recorded publicly.