Donald Trump is suing the Internal Revenue Service (IRS) and the Treasury Department for $10 billion, claiming federal officials failed to protect his confidential tax information and allowed it to be unlawfully disclosed during his first term.
The lawsuit, filed Thursday in federal court in Florida, centers on disclosures made in 2019 and 2020 by former IRS contractor Charles Littlejohn, who shared Trump’s tax returns with media outlets including The New York Times and ProPublica.
Trump is joined in the complaint by Donald Trump Jr. and Eric Trump, as well as The Trump Organization. The plaintiffs argue the IRS and Treasury breached their “duty to safeguard” protected taxpayer data and that the resulting disclosures caused reputational and financial damage.
Why It Matters
The filing adds a new chapter to the long-running political and legal battles over public access to Trump’s tax information and the government’s responsibility to keep taxpayer data confidential.
The lawsuit also comes days after the Treasury Department canceled $21 million in contracts with Booz Allen Hamilton, Littlejohn’s former employer, citing the breach.
Treasury Secretary Scott Bessent said in a statement that Booz Allen “failed to implement adequate safeguards to protect sensitive data,” including confidential taxpayer information accessed through IRS-related work.
What the Lawsuit Alleges
Trump’s complaint argues the IRS and Treasury failed to prevent unauthorized access to his tax records and says the information was later used in reporting by publications the lawsuit labels “leftist.”
According to the complaint, the agencies were required to maintain strong technical controls, screening, security, and monitoring systems to stop misconduct like Littlejohn’s, but did not take the mandatory precautions needed to prevent the leak.
The case was filed in the Southern District of Florida. Donald Trump Jr. and Eric Trump are listed as plaintiffs in their roles as executive vice presidents at The Trump Organization. The suit claims the disclosures harmed the plaintiffs’ public standing, business reputations, and finances.
Background on the Leak
Littlejohn pleaded guilty in 2023 to unauthorized disclosure of tax return information. He was sentenced in 2024 to five years in prison for leaking Trump’s records and the confidential tax data of thousands of wealthy individuals.
In 2020, The New York Times reported that Trump paid $750 in federal income taxes in 2016 and paid no income taxes in 10 of the prior 15 years.
What People Are Saying
The lawsuit states that the defendants caused “reputational and financial harm,” “public embarrassment,” and damage to business reputations, and that the disclosures “portrayed them in a false light.”
Nicole M. Argentieri, who previously served as Acting Assistant Attorney General for the Justice Department’s Criminal Division, has said Littlejohn “abused his position as a consultant at the Internal Revenue Service” by disclosing thousands of Americans’ tax returns and other private financial information to news organizations.
Before sentencing, Littlejohn told the court he acted out of “a sincere but misguided belief” that he was serving the public and said he understood his decision would likely end in prosecution.
What Happens Next
The case will now move forward in federal court, where the government is expected to respond to the complaint. The dispute could test how courts interpret federal liability under taxpayer confidentiality laws and how damages are evaluated when private tax information is improperly disclosed.
