Politics

President Trump and Family Sue IRS and Treasury for $10 Billion Over Tax Record Leaks

Illustration for: President Trump and Family Sue IRS and Treasury for $10 Billion Over Tax Record Leaks
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Jan 30, 2026

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President Donald Trump, his sons Donald Jr. and Eric, and the Trump Organization filed a lawsuit against the Internal Revenue Service and the Treasury Department on Thursday. Lodged in federal court in Miami, the complaint seeks at least $10 billion in damages, alleging the agencies failed to safeguard confidential tax information that was subsequently disclosed to media organizations in 2019 and 2020.

The lawsuit claims the plaintiffs suffered financial loss, reputational harm, and public embarrassment due to the unauthorized release of the records. A spokesperson for the legal team stated that a "rogue, politically-motivated employee" was improperly permitted to access and disseminate the private data. The complaint argues the government agencies acted negligently by not establishing adequate security measures for taxpayer information.

The legal action centers on the conduct of Charles Littlejohn, a former IRS contractor employed by the consulting firm Booz Allen Hamilton. Littlejohn is currently serving a five-year prison sentence after pleading guilty to disclosing tax return information. According to prosecutors, Littlejohn admitted to leaking the tax records of the president and other wealthy individuals to news outlets. The lawsuit alleges Littlejohn utilized his access to unmasked data to advance a political agenda.

Earlier this week, the Treasury Department canceled its contracts with Booz Allen Hamilton, accusing the firm of failing to protect sensitive data accessible through its work with the IRS. Treasury Secretary Scott Bessent announced the contract cancellations days before the suit was filed. The IRS and Treasury Department have not publicly commented on the litigation.

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• Prosecution of the perpetrator Charles Littlejohn, the former contractor identified as the source of the leak, is currently serving a five-year prison sentence. According to prosecutors, Littlejohn pleaded guilty and admitted to disclosing the tax return information of the president and other wealthy individuals.

• Termination of consulting contracts Treasury Secretary Scott Bessent announced the cancellation of contracts with Booz Allen Hamilton shortly before the lawsuit was filed. The Treasury Department accused the consulting firm of failing to protect the sensitive data accessible through its work with the IRS.

• Official stance on the litigation While administrative and criminal actions have been taken regarding the breach, the IRS and Treasury Department have not publicly commented on the specific lawsuit. The agencies have offered no response to the claims of negligence or the request for damages described in the complaint.

How it may affect me

As a U.S. reader:

• A potential judgment or settlement reaching the requested $10 billion would be paid using federal government funds, which are primarily derived from U.S. tax revenue.

• The termination of Booz Allen Hamilton contracts may trigger operational changes at the IRS, potentially resulting in new security measures for how third-party contractors access your tax data.

• Successful litigation regarding agency negligence could establish stricter liability standards for the federal government regarding the protection of private citizen information against internal breaches.

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