Trump Lawsuit: $10 Billion Claim Against IRS & Treasury Over Tax Data Leak

Trump Lawsuit: $10 Billion Claim Against IRS & Treasury Over Tax Data Leak

President Donald Trump has filed a significant lawsuit. He is suing the IRS and the Treasury Department. The lawsuit demands $10 billion in damages. This action stems from a leak of his tax information. The leak occurred between 2018 and 2020.

The Core Accusation

The lawsuit claims the federal agencies failed to prevent a leak of his tax returns. Former IRS contractor Charles Edward Littlejohn is identified as the individual responsible for the leak. Littlejohn leaked tax records belonging to Trump, his family, and hundreds of Trump Organization entities. The information was then disseminated to news outlets, including The New York Times and ProPublica. This act violated IRS Code 6103, a strict confidentiality law.

Key Players and Their Roles

President Donald Trump is the primary plaintiff. His sons, Eric Trump and Donald Trump Jr., are also named as plaintiffs. The Trump Organization is included as a plaintiff as well. Charles Edward Littlejohn, the former IRS contractor, is central to the case. He worked for Booz Allen Hamilton, a contractor for the IRS. Treasury Secretary Scott Bessent is mentioned in relation to the department’s actions. He stated that Booz Allen Hamilton failed to protect confidential taxpayer information.

The Alleged Harm

The lawsuit alleges significant harm. This includes reputational and financial damage. It also cites public embarrassment and the tarnishing of business reputations. Furthermore, the plaintiffs claim they were portrayed in a false light. The leaks reportedly negatively affected President Trump’s public standing. One claim suggests the leaks adversely impacted Trump’s support among voters in the 2020 presidential election. The lawsuit seeks $1,000 for each unauthorized disclosure, totaling at least $10 billion.

Background and Consequences

Charles Littlejohn pleaded guilty to leaking tax information. He received a five-year prison sentence in 2024. Littlejohn had access to Trump’s tax records since 2018. Prosecutors stated Littlejohn intended to leak Trump’s returns, viewing him as a threat. The Treasury Department has since cut contracts with Booz Allen Hamilton, Littlejohn’s former employer. Treasury Secretary Scott Bessent cited inadequate data safeguards as the reason. The IRS acknowledged the incident as “unacceptable”. The agency has taken steps to enhance data security. This lawsuit is one of several large suits Trump has filed against media and government entities.

The lawsuit was filed in a Florida federal court on January 29, 2026. The plaintiffs argue the IRS and Treasury had a duty to protect taxpayer data. They failed to take mandatory precautions. The suit claims these failures were willful or due to gross negligence.