IRS Workers Union Expands Lawsuit to Challenge Trump Tax-Audit Immunity

The National Treasury Employees Union (NTEU) filed an amended civil complaint in the Eastern District of Virginia, asking a federal judge to block a May 19 memorandum from acting Attorney General Todd Blanche that grants President Donald Trump, his adult children and the Trump Organization immunity from IRS audits of past tax filings. The union says the order would force career IRS employees to abandon ongoing audits, putting them at odds with the law.

AlternetAssociated PressIRS workers' union joins lawsuit targeting Trump's 'Anti-Weaponization Fund' The HillNBC NewsNOTUSNew York Times

The immunity provision stems from a settlement after Trump sued the IRS over the leak of his tax returns. In May 18 the Justice Department created a $1.776 billion “anti-weaponization” fund to compensate individuals who claimed they were targeted by the Biden administration. The same settlement included a one-page memo—signed by Blanche—stating the government was “forever barred and precluded” from investigating the president’s family and business entities for actions taken before the memo’s issuance.

The Hill

Earlier litigation, filed in May, targeted the fund itself, which critics said could reward participants in the Jan. 6, 2021 Capitol riot. U.S. District Judge Leonie Brinkema temporarily blocked the fund, and Blanche later rescinded it under pressure from Republican senators. The current suit is the first to directly challenge the audit-immunity clause.

Associated Press

> “A Jan. 6 prosecutor fired by the Trump administration and others previously sued to block a fund that could have gone to Trump allies who said they were victims of weaponization, potentially including Jan. 6 rioters. A federal judge then temporarily blocked the fund from moving forward in May.” — News' Ryan J. Reilly

Associated Press

• Anti-weaponization fund: $1.776 billion (proposed).

Associated Press

• Potential back-tax liability for Trump: more than $100 million, according to prior reporting.

Associated Press

• Skye Perryman, president and CEO of Democracy Forward, called the immunity order “unprecedented and unlawful” and warned it would compel IRS employees to violate their oath.

NBC News

• The Justice Department declined to comment on the amended lawsuit. Blanche’s written rescission affirmed the fund’s termination but did not formally revoke the immunity memo, noting it applies “only retroactively.”

NOTUS

• Scope of immunity: The DOJ says the order applies only to tax returns filed before the May 19 memo; plaintiffs argue it creates a blanket shield for future audits.

The Hill

• Financial exposure: Estimates of Trump’s owed taxes vary, with some reports citing “more than $100 million” and others offering no precise figure.

Associated Press

• “It is unprecedented and unlawful for the I.R.S. to allow the president and his family to be exempt from review,” — Skye Perryman, Democracy Forward

New York Times

• “The integrity of our tax system depends on one fundamental principle: every taxpayer is subject to the same laws and the same standards,” — Doreen Greenwald, NTEU

Associated Press

Senator Todd Blanche’s nomination for attorney general remains pending before the full Senate, with the confirmation fight tied to his handling of the fund and immunity order. The plaintiffs seek a permanent injunction, and the case is expected to return to Judge Leonie Brinkema for further rulings on the legality of the immunity provision.

NOTUS