President Donald Trump says that he “wasn’t involved” in a settlement that drops past tax inquiries into the president, his family, and his businesses. The sweeping immunity is outlined in a one-page document that was quietly posted on the Justice Department’s website on Tuesday, adding to an original settlement agreement released on Monday that also created a $1.8 billion fund to compensate alleged victims of politically motivated prosecutions. The deal aims to resolve a lawsuit that Trump filed against the Internal Revenue Service (IRS) over the leak of his tax returns. The president claimed that the release of confidential records caused reputational and financial harm.”I wasn’t involved in the settlement. I could have been involved, but I didn’t choose to be,” Trump told reporters on Wednesday. The agreement says that the U.S. government is “FOREVER BARRED and PRECLUDED from prosecuting or pursuing” tax claims against the president and a wide range of affiliates. It was signed by acting Attorney General Todd Blanche, who previously served as the president’s personal attorney. Natalie Baldassarre, a spokesperson for the Justice Department, clarified that the agreement only covers existing IRS audits, not future ones. “As is customary in settlements, both sides have executed waivers of a variety of claims that were or could have been brought,” Baldassarre added. “There would be little point in settling several significant claims if either party could simply turn around and seek to initiate more adverse claims that could have been pursued previously.”But Brandon DeBot, policy director at NYU’s Tax Law Center, said the agreement is unprecedented and legally dubious. He said it attempts to erase potentially outstanding tax liabilities or penalties. “It’s a breathtaking abuse of the tax and legal system,” Debot said. “That’s giving the president and his affiliates a different set of rules than everyday taxpayers.”Debot said federal law prohibits the president and White House staff from interfering in IRS audits, a guardrail that’s intended to protect the fairness of the federal tax system. He said the Attorney General is not covered by that statute, but potential political interference should be thoroughly investigated. Debot said the DOJ alone does not have authority to offer the “extraordinary protections” outlined in the agreement, and that the IRS would need to act to make the release of claims effective. “The IRS could seek to void agreements with the showing of fraud, malfeasance, or misrepresentation of a material fact,” Debot said. The IRS didn’t immediately respond to emailed questions about those legal concerns. The White House referred questions to the Trump organization, which didn’t reply to an email seeking comment on Wednesday.
President Donald Trump says that he “wasn’t involved” in a settlement that drops past tax inquiries into the president, his family, and his businesses.
The sweeping immunity is outlined in a one-page document that was quietly posted on the Justice Department’s website on Tuesday, adding to an original settlement agreement released on Monday that also created a $1.8 billion fund to compensate alleged victims of politically motivated prosecutions.
The deal aims to resolve a lawsuit that Trump filed against the Internal Revenue Service (IRS) over the leak of his tax returns. The president claimed that the release of confidential records caused reputational and financial harm.
“I wasn’t involved in the settlement. I could have been involved, but I didn’t choose to be,” Trump told reporters on Wednesday.
The agreement says that the U.S. government is “FOREVER BARRED and PRECLUDED from prosecuting or pursuing” tax claims against the president and a wide range of affiliates. It was signed by acting Attorney General Todd Blanche, who previously served as the president’s personal attorney.
Natalie Baldassarre, a spokesperson for the Justice Department, clarified that the agreement only covers existing IRS audits, not future ones.
“As is customary in settlements, both sides have executed waivers of a variety of claims that were or could have been brought,” Baldassarre added. “There would be little point in settling several significant claims if either party could simply turn around and seek to initiate more adverse claims that could have been pursued previously.”
But Brandon DeBot, policy director at NYU’s Tax Law Center, said the agreement is unprecedented and legally dubious. He said it attempts to erase potentially outstanding tax liabilities or penalties.
“It’s a breathtaking abuse of the tax and legal system,” Debot said. “That’s giving the president and his affiliates a different set of rules than everyday taxpayers.”
Debot said federal law prohibits the president and White House staff from interfering in IRS audits, a guardrail that’s intended to protect the fairness of the federal tax system. He said the Attorney General is not covered by that statute, but potential political interference should be thoroughly investigated.
Debot said the DOJ alone does not have authority to offer the “extraordinary protections” outlined in the agreement, and that the IRS would need to act to make the release of claims effective.
“The IRS could seek to void agreements with the showing of fraud, malfeasance, or misrepresentation of a material fact,” Debot said.
The IRS didn’t immediately respond to emailed questions about those legal concerns. The White House referred questions to the Trump organization, which didn’t reply to an email seeking comment on Wednesday.
