Stock Markets April 17, 2026 05:16 PM

Trump and IRS Lawyers Seek 90-Day Pause as Settlement Talks Progress in $10 Billion Leak Suit

Miami federal court filing requests temporary stay while parties discuss resolution of lawsuit over leaked tax returns

By Avery Klein
Trump and IRS Lawyers Seek 90-Day Pause as Settlement Talks Progress in $10 Billion Leak Suit

Attorneys for President Donald Trump and the Internal Revenue Service have asked a federal judge in Miami to pause the president's $10 billion lawsuit alleging the IRS leaked his tax returns to news organizations in 2019 and 2020. The parties requested a 90-day hold to pursue settlement discussions, noting a delay could help narrow or resolve issues without protracted litigation. The case stems from disclosures by a former IRS contractor, and includes additional plaintiffs and government defendants that raise conflict-of-interest concerns for Department of Justice counsel.

Key Points

  • Attorneys for President Trump and the IRS asked a Miami federal judge to pause the $10 billion lawsuit for 90 days while settlement discussions continue - impacts the legal and government sectors.
  • The suit stems from tax-return disclosures by former IRS contractor Charles Littlejohn to media outlets, which prosecutors later charged him for and he pleaded guilty - relevant to media and legal sectors.
  • A pause could give Justice Department lawyers extra time to manage conflicts of interest because the president is suing executive-branch agencies, including the IRS and Treasury - affecting government legal workflows and DOJ conflict management.

Lawyers representing President Donald Trump and the Internal Revenue Service have moved to suspend proceedings in the president's $10 billion lawsuit over alleged leaks of his tax returns, filing in Miami federal court a request to put the case on hold for 90 days while the parties explore settlement options.

The filing, submitted on Friday, asks the presiding judge to stay the litigation "while the parties engage in discussions designed to resolve this matter and to avoid protracted litigation." The attorneys noted that a temporary pause "could narrow or resolve the issues efficiently."

There was no immediate response from the White House to a request for comment, and the U.S. Department of Justice, which represents the IRS in the matter, declined to comment.


Parties and procedural complications

The lawsuit names multiple plaintiffs and government defendants. In addition to President Trump, the plaintiffs include his adult sons, Donald Trump Jr. and Eric Trump, and the Trump Organization. The IRS and the Treasury Department are among the defendants, and the Justice Department is the government lawyer of record for those agencies.

Lawyers for the parties argued that the requested delay would also give Justice Department attorneys additional time to address potential conflicts of interest created by the unique posture of the case: the president is suing executive-branch agencies, while Justice Department lawyers ultimately report to the president.


Origins of the dispute

The lawsuit traces to disclosures by Charles Littlejohn, a former IRS contractor, who provided tax-return information to media outlets, including the New York Times and ProPublica. Reporting based on those documents indicated the returns showed the president paid little or no income taxes in many years.

The plaintiffs allege the unauthorized disclosures caused financial harm, public embarrassment and reputational damage.

Prosecutors charged Littlejohn in 2023 with leaking tax records belonging to the president and thousands of other wealthy individuals. Authorities said Littlejohn was driven by a political agenda. He ultimately pleaded guilty to improper disclosures and was sentenced to five years in prison.


Financial implications and other litigation

Any damages paid in this lawsuit would likely be drawn from taxpayer funds. President Trump has said that if he recovers money from the case he would donate the proceeds to charity.

The president has filed a series of large civil suits in his personal capacity since winning a second term in 2024, often in response to media coverage. Those actions include a $15 billion suit naming the New York Times and Penguin Random House, and a $10 billion suit against the BBC over its editing of a broadcast of a speech he delivered prior to the January 6, 2021, breach of the U.S. Capitol.

Separately, a judge recently dismissed Mr. Trump’s $10 billion lawsuit against the Wall Street Journal over an article referencing a lewd birthday greeting involving the late Jeffrey Epstein, while allowing the president to refile by April 27. The president said he planned to refile.


Contextual note within the article

The article also contained promotional material referencing a Fair Value calculator for evaluating whether the New York Times is a bargain, describing the tool as using a mix of 17 valuation models to assess stocks. That material appeared as part of the original content but is separate from the reporting on the lawsuit.


What happens next

The judge will determine whether to grant the requested 90-day hold. If the court agrees, the pause would provide the parties time to pursue negotiations that, according to their filing, could reduce the scope of disputes or lead to a resolution without extended litigation. If the stay is not granted, the case would proceed under the court’s existing schedule.

Risks

  • Potential conflict-of-interest issues for Justice Department attorneys, since DOJ lawyers report to the president while representing executive-branch defendants - risk to government legal independence and case management.
  • Any monetary award in the lawsuit would likely come from taxpayer funds, raising fiscal and public-policy considerations - risk for public finances and taxpayer sentiment.
  • Ongoing parallel litigation filed by the president against media organizations could complicate legal resources and attention, extending uncertainty for involved media outlets and publishers.

More from Stock Markets

Mexican equities climb as Industrials and consumer sectors lead gains Apr 17, 2026 Colombian equities retreat as COLCAP drops 1.33% at Friday close Apr 17, 2026 MOEX Russia Index Ends Lower as Oil & Gas, Power and Mining Stocks Weigh Apr 17, 2026 Spirit Airlines Seeks Emergency Federal Aid as Fuel Costs Rise and Restructuring Deepens Apr 17, 2026 Fed Signals Banks Should Not Repeat Strong Pushback on Revised Capital Rules Apr 17, 2026