Trump Drops $10 Billion IRS Lawsuit Without Explanation

President Donald Trump, his two eldest sons, and the Trump Organization voluntarily dismissed their $10 billion lawsuit against the Internal Revenue Service on Monday, according to a Miami federal court filing. The filing by Trump's lawyers did not specify the reason for the move.

The dismissal comes amid controversy over reports that the Department of Justice was negotiating a settlement that could see the federal government pay $1.7 billion toward a fund for allies of Trump who allege wrongful treatment by the Biden administration. Democratic members of Congress called that a "slush fund." CNBC has asked the DOJ whether the dismissal is linked to a settlement outside of court.

The court filing stated that Donald Trump, Donald Trump Jr., Eric Trump, and the Trump Organization are voluntarily dismissing the lawsuit "with prejudice." That means the plaintiffs cannot renew the same claims in another civil complaint.

The Lawsuit and Its Origins

Trump sued the IRS in late January over the leak of his tax information by IRS employee Charles "Chaz" Littlejohn in 2019 and 2020. The $10 billion claim sought damages for the disclosure of confidential tax returns. A spokesman for Trump's attorneys had no immediate comment on the dismissal. The IRS did not immediately respond to a request for comment.