In February, President Donald Trump launched a $10 billion lawsuit against the Internal Revenue Service (IRS), but now, settlement talks are underway. And a court-appointed attorney, in a legal document, is asking a judge to evaluate the U.S. Department of Justice's (DOJ) "atypical" handling of the case.
According to the document, "The Court may consider further inquiring into the circumstances surrounding Defendants' litigation conduct to determine whether the atypical treatment of this case can be attributed to some factor other than the President’s ability to control Defendants. The Court might ask why DOJ's approach to litigating this case appears to depart from its approach in similar cases, as well as what steps Defendants are taking to ensure that settlement discussions are conducted at arm’s length and without risk of collusion."
ABC News reported that Trump is "expected to drop" the lawsuit against the IRS "in exchange for the creation of a $1.7 billion fund to compensate allies who claim they were wrongfully targeted by the Biden administration."
The court filing states that "the Court may also find it appropriate to inquire whether, if the parties settle this suit, DOJ intends to comply with applicable regulatory requirements and to account for limitations on the relief available under the causes of action asserted."
According to the Trump v. the IRS document, the defendants in the case, " have not taken any positions in this litigation yet."
"This case was filed on January 29, 2026," the filing notes. "To date, the only public engagement from the parties has been Plaintiffs' (admittedly unusual) step of filing of a request for an extension of time for Defendants to answer or move to dismiss, which referenced ongoing settlement negotiations."