New deal bars IRS from tax audits of Trump, his family and businesses

President Donald Trump has been feuding with the IRS for many years over audits into whether he and his business empire paid enough taxesShow Caption

WASHINGTON – The Justice Department agreement with President Donald Trump over his leaked tax returns includes a guarantee that the tax agency will no longer pursue any claims over tax liabilities it may have against Trump, his family members and his companies.The nine-page settlement agreement made public by the Justice Department May 18, set up a $1.776 billion fund for "victims of lawfare and weaponization," did not include any mention of the government's efforts to go after Trump, his family and his companies over longstanding tax disputes.On May 19, DOJ posted a separate one-page document on its website – signed by acting Attorney General Todd Blanche – with the new details. It includes what appears to be an all-inclusive release in which the Internal Revenue Service is “FOREVER BARRED and PRECLUDED” from “prosecuting or pursuing” any and all efforts to determine if Trump and the other parties are liable for non- or under-payment of taxes, interest, attorney’s fees or expenses incurred by the government.Trump sued the IRS in January for $10 billion for a contractor leaking his returns, even though he had been promising since 2014 that he would release the returns to the public if he ran for president.Some tax experts questioned the propriety and legality of the agreement, which did not include the signature of anyone from the Department of Treasury or IRS.“This won’t stand up in court; this is corruption with a capital C and ultimately, the American people won't tolerate this,” Paul Pelletier, a former senior Justice Department tax and white-collar crime prosecutor who represented the IRS told USA TODAY. “And the next administration can easily reverse it.”In September 2020, as Trump was campaigning for re-election, The New York Times published a bombshell report that he had paid only $750 in federal income taxes each in 2016 and 2017."He had paid no income taxes at all in 10 of the previous 15 years − largely because he reported losing much more money than he made," The Times reported, citing Trump tax-return data and tax returns filed with the IRS that he had long sought to keep private.Also hanging over Trump at the time, The Times reported, was a decade-long audit battle with the IRS over the legitimacy of a $72.9 million tax refund that he claimed, and received, after declaring huge losses."An adverse ruling," the newspaper wrote, "could cost him more than $100 million."Democrats blast payout at Blanche hearingBlanche was sharply criticized by Senate Democrats, who said the fund is geared toward benefiting Trump's political allies with taxpayer dollars, during his appearance at an appropriations hearing on May 19.Sen. Chris Van Hollen of Maryland, the ranking Democrat on the committee, told Blanche he considers the fund “an outrageous, unprecedented slush fund that you set up” to settle Trump’s lawsuit.Like other Democrats, Van Hollen noted that Blanche had been Trump’s personal defense lawyer in several of his criminal cases.Blanche argued the fund is nonpartisan.“It's not limited to Republicans," Blanche told members of the Senate Appropriations subcommittee, which oversees spending for the Justice Department. "There's no limitation on the claims."Blanche said that “anybody” can apply for a payout, including those convicted of attacking police during the Jan. 6, 2021, Capitol riot.“Simple question, will individuals who assaulted Capitol Hill police officers be eligible for this fund?” Van Hollen asked at one point."Anybody in this country is eligible to apply if they believe they're a victim of weaponization,” Blanche replied.“Are there going to be rules that say that if you've assaulted a Capitol Hill police officer or committed a violent crime, you will not be eligible? Why not make that a rule?” Van Hollen asked Blanche.“Because I’m not one of the five commissioners setting up the rules,” Blanche replied.“You’re appointing four of the five members, aren’t you, Mr. Attorney General?” Van Hollen said.“I am appointing all five members,” Blanche replied.But Blanche would not commit, under repeated questioning by Democrats, to providing his appointees with guidance about whether to bar anyone connected to Jan. 6 from applying, including those convicted of using violence against police officers defending the Capitol.“I don't think it's the attorney general's job to encourage commissioners to do or not do anything,” Blanche said.Later, Blanche said anyone, even President Biden’s son Hunter, could apply for compensation under the new fund. He also said anyone brought before the various grand juries in Trump’s criminal cases – including his Mar-a-Lago gardeners and Secret Service agents – were good candidates for compensation because of the “weaponization” they endured.