US government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement


WASHINGTON (AP) — The U.S. government will permanently drop tax claims against President Donald Trump, according to a settlement document that is part of a deal to resolve Trump’s $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns.

As part of the settlement agreement, the U.S. is “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump organization’s current tax issues, according to a one-page document posted to the DOJ website on Tuesday.

The Trump administration announced Monday the creation of a nearly $1.8 billion fund to compensate allies of the Republican president who believe they have been unjustly investigated and prosecuted, an arrangement that Democrats and government watchdogs derided as “corrupt” and unconstitutional.

The “Anti-Weaponization Fund” of $1.776 billion, will allow people who believe they were targeted for prosecution for political purposes, including by the Biden administration Justice Department, to apply for payouts, creating what acting Attorney General Todd Blanche called “a lawful process for victims of lawfare and weaponization to be heard and seek redress.”

Blanche, who was grilled by lawmakers on Capitol Hill on Tuesday, would not rule out the possibility that people who carried out violence during the Jan. 6, 2021, riot at the U.S. Capitol will be considered for payouts from the new fund.

Democratic lawmakers and ethics watchdogs slammed the creation of the fund, saying it was corrupt, opaque and had the potential to become a “slush fund” for the president and his allies.

According to a separate settlement agreement posted to the DOJ website Monday, Trump will receive a formal apology from the U.S. government but “will not receive any monetary payment or damages of any kind,” from the settlement.

Trump told reporters at the White House on Monday the fund is dedicated to “reimbursing people who were horribly treated.”

Fatima Hussein, The Associated Press



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