Economy January 29, 2026

Trump Sues IRS and Treasury for $10 Billion Over Alleged Tax-Record Leak

Federal complaint in Florida alleges repeated data-security failures after former contractor disclosed returns to media

By Nina Shah
Trump Sues IRS and Treasury for $10 Billion Over Alleged Tax-Record Leak

Former President Donald Trump, joined by his sons and the Trump Organization, filed a federal suit in Florida seeking $10 billion in damages from the Internal Revenue Service and the U.S. Treasury. The complaint alleges the agencies failed to protect confidential tax return data, enabling a former IRS contractor to access and leak the information to media outlets including the New York Times and ProPublica. The case follows the guilty plea and sentencing of contractor Charles Littlejohn.

Key Points

  • The plaintiffs - Donald Trump, Donald Trump Jr., Eric Trump, and the Trump Organization - filed a federal suit in Florida seeking $10 billion in damages from the IRS and U.S. Treasury.
  • The complaint alleges the agencies failed to safeguard confidential tax records, enabling a former IRS contractor to access and leak information to media outlets, including the New York Times and ProPublica; impacted sectors: government agencies and legal/financial reputations.
  • The case stems from the conduct of Charles Littlejohn, a former IRS contractor who pleaded guilty in 2023 to unlawfully disclosing tax return information and was sentenced to five years in prison.

Former President Donald Trump has initiated legal action against the Internal Revenue Service and the U.S. Treasury Department, asking a federal court in Florida to award $10 billion in damages over what the complaint calls the unlawful disclosure of his tax return information.

The lawsuit, filed on Wednesday, contends that the two agencies failed to maintain adequate safeguards to protect confidential tax records. According to the filing, those failures permitted a former IRS contractor to unlawfully obtain and then leak tax return information to media organizations, specifically naming the New York Times and ProPublica.

Trump is bringing the suit jointly with his sons, Donald Trump Jr. and Eric Trump, and with the Trump Organization. The plaintiffs assert that the disclosures inflicted substantial reputational and financial harm.

The complaint sets out allegations of negligence and willful misconduct by the IRS and the Treasury, pointing to repeated lapses in internal data security and oversight as the basis for the claims. It seeks statutory, compensatory, and punitive damages, arguing that the scope of the disclosures and the number of affected parties justify a multibillion-dollar award.

This litigation traces back to the actions of Charles Littlejohn, a former IRS contractor who in 2023 pleaded guilty to unlawfully disclosing tax return information belonging to Trump and other wealthy individuals. Littlejohn was subsequently sentenced to five years in prison.

The suit frames the matter as one of institutional accountability for protecting sensitive taxpayer information, asserting that failures by the agencies entrusted with those duties directly enabled the unauthorized disclosures.


Case background

  • The complaint alleges systemic failures in data controls and supervision at the IRS and Treasury.
  • Named recipients of the leaked information in the filing include the New York Times and ProPublica.
  • The underlying criminal conduct involved Charles Littlejohn, who pleaded guilty in 2023 and received a five-year prison sentence.

Claims and requested relief

The plaintiffs are pursuing statutory remedies as well as compensatory and punitive damages. The filing argues that the magnitude of the alleged breach and the number of parties affected support a multibillion-dollar claim. The complaint accuses the agencies of negligence and willful misconduct tied to repeated deficiencies in internal security and oversight.


What is unresolved

The filing itself presents allegations and a damages demand; the federal court in Florida will determine how the claims proceed and whether the requested relief is warranted under the law. The suit follows the criminal case against the contractor responsible for the disclosures, but civil liability, damages, and agency responsibility remain matters for the civil court to adjudicate.

Risks

  • Uncertainty over civil liability and the eventual damages awarded - the suit requests statutory, compensatory, and punitive relief but outcome and award amount are unresolved; impacted sectors: legal and governmental institutions.
  • Allegations of repeated internal data-security failures at federal agencies could lead to prolonged litigation and oversight inquiries, with potential reputational consequences for the agencies involved; impacted sectors: public sector administration and taxpayer confidence.

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