Trump sues IRS for $10B over contractor's tax leak
President controls agencies he's suing for his own payout
🏛️Government🔐Ethics⚖️Justice📜Constitutional Law
Charles Littlejohn worked as an IRS contractor for Booz Allen Hamilton when he leaked Trump's tax returns to The New York Times and ProPublica between 2018 and 2020. He pleaded guilty in Oct. 2023 to one count of disclosure of tax return information. In 2024, a federal judge sentenced him to the maximum penalty of five years in prison.
The New York Times published stories in Sep. 2020 showing Trump paid only $750 in federal income taxes in both 2016 and 2017. ProPublica published a series in 2021 about discrepancies in Trump's tax records. The IRS determined that Littlejohn's leak affected approximately 406,000 taxpayers total, including billionaires Jeff Bezos and Elon Musk.
Trump didn't sue while Joe Biden controlled the Treasury and IRS. He waited until he became president again in Jan. 2025, then filed the lawsuit on Jan. 29, 2026. This puts him in control of the agencies he's suing. Trump told reporters in Oct. 2025 he would decide whether to approve any settlement, saying it's "awfully strange to make a decision where I'm paying myself."
On Jan. 26, 2026, Treasury Secretary Scott Bessent announced he was canceling all 31 Treasury contracts with Booz Allen Hamilton, totaling $21 million in obligations. Bessent said Booz Allen "failed to implement adequate safeguards" to protect taxpayer data. Three days later, Trump filed the $10 billion lawsuit. Booz Allen's stock dropped more than 10% after the contract cancellation.
The lawsuit names Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization as plaintiffs. They claim the leak caused "reputational and financial harm, public embarrassment, unfairly tarnished their business reputations, portrayed them in a false light, and negatively affected President Trump" and his support among voters in the 2020 election. The suit was filed in federal court in Miami.
Trump has filed multiple $10 billion lawsuits since returning to office in 2025. He sued the BBC for $10 billion over defamation claims. He sued The Wall Street Journal and Rupert Murdoch for $10 billion. He sued The New York Times for $15 billion. He sued JPMorgan Chase for $5 billion. He also sought $230 million from the Justice Department for past investigations.
Trump's lawsuit is unusual because a sitting president is suing his own administration. Treasury employees must defend actions from the Biden administration while Trump's political appointees run the department they're defending. If Trump wins, taxpayers pay damages to the president. Trump controls both sides of any settlement negotiation. The suit raises conflict-of-interest questions about a president seeking billions from agencies under his control.
🏛️Government🔐Ethics⚖️Justice📜Constitutional Law
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What you can do
1
civic action
Contact your representative about conflicts of interest in government lawsuits
Ask Congress to provide oversight when the president sues agencies he controls.
Hi, I'm calling about President Trump's $10 billion lawsuit against the IRS and Treasury Department.
Key concern: The president is suing agencies he controls, creating a conflict where he decides both sides of any settlement.
Questions to ask:
- What oversight will Congress provide for this lawsuit?
- Will there be hearings on the conflict-of-interest issues?
- How will Congress ensure taxpayers aren't paying damages to a sitting president?
Specific request: I want Congress to investigate whether it's appropriate for a president to sue his own administration and potentially approve a multi-billion dollar payout to himself.
Thank you for your time.
2
civic action
Submit a comment to the Treasury Inspector General about IRS data security
Ask what safeguards prevent contractor breaches of taxpayer data.
complaints@tigta.treas.gov
I'm writing to ask about IRS data security following the Charles Littlejohn leak.
Background: Littlejohn leaked tax returns for 406,000 taxpayers, including President Trump, between 2018 and 2020.
Questions:
- What additional safeguards have been implemented since Littlejohn's conviction?
- How does the IRS monitor contractor access to confidential taxpayer information?
- What penalties exist for firms whose employees breach data security?
Request: Please provide information on current protections preventing future contractor breaches of taxpayer data.
3
learning more
Track the lawsuit through federal court records
Monitor how courts handle a president suing his own agencies.