US judge voids Donald Trump's $1.8bn settlement with IRS that gave him immunity from tax audits
Image: BBC News
A federal judge has thrown out a $1.8bn (£1.4bn) settlement that US President Donald Trump reached with the Internal Revenue Service, a deal that had effectively shielded him from routine tax audits. The ruling scraps an agreement that tax experts described as extraordinary in its scope and protective terms.
In a sharply worded opinion, the judge said the suit that produced the settlement was brought for "improper purposes" and referred a Trump attorney for possible disciplinary action. The decision opens the door to renewed scrutiny of the president's tax affairs by the agency.
The settlement had resolved a long-running dispute over how the Trump Organisation valued its real-estate assets and claimed deductions. Under its terms, the IRS had agreed not to pursue standard audit procedures against the president's returns for the years in question, a provision critics called a de facto grant of immunity.
Legal observers note that voiding the pact means the underlying tax questions are no longer settled, potentially exposing the president to significant liabilities if the agency re-examines the filings. The referral of the attorney to a disciplinary body adds a separate ethical dimension to the case.
The White House and the president's legal team have not yet indicated whether they will appeal the ruling. Tax lawyers say any appeal could stretch on for months, prolonging one of the most consequential financial disputes of Trump's post-presidency period.
For now, the judgement restores the IRS's ability to audit the president's returns in the affected years, undoing a settlement that had drawn scrutiny from lawmakers and good-government groups alike.