President Donald Trump has launched a multibillion-dollar legal battle against the United States Internal Revenue Service, accusing the agency of failing to protect his confidential tax records and seeking $10 billion in damages for what he says was severe harm to his business and reputation.
The civil suit was filed on Thursday in federal court in Miami by Trump in his personal capacity, alongside his two eldest sons, Eric Trump and Donald Trump Jr., as well as the Trump Organization. The plaintiffs argue that both the IRS and the US Treasury Department breached their legal responsibility to safeguard private taxpayer information, allowing sensitive financial records to be unlawfully disclosed to the public.
According to the court filing, Trump’s tax documents were improperly accessed and leaked by Charles “Chaz” Littlejohn, a former IRS contractor who worked at the agency between May 2019 and September 2020. The lawsuit contends that the leak triggered widespread public scrutiny and media coverage that damaged Trump’s commercial interests and standing.
The filing states that the disclosure caused significant reputational and financial losses, exposed the family and their businesses to public ridicule, and portrayed the plaintiffs in a misleading and harmful manner. It adds that the incident negatively affected Trump’s public image and undermined confidence in the Trump Organization.
Littlejohn pleaded guilty in 2023 to unlawfully releasing tax information belonging to Trump and several wealthy individuals. He is currently serving a five-year prison sentence.
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Trump’s tax affairs had been the subject of intense political debate during his first term in office, largely because he broke with decades of tradition by refusing to release his returns while campaigning for president. In September 2020, The New York Times published an investigation reporting that Trump paid only $750 in federal income taxes in both 2016 and 2017, and no federal income tax at all in 10 of the preceding 15 years, citing leaked records.
The lawsuit against the IRS is not the first time Trump has taken legal action against federal institutions under his authority. Media reports indicate he previously sought $230 million in damages from the US Department of Justice over investigations related to classified documents and efforts to challenge the outcome of the 2020 presidential election.
The case adds another layer to Trump’s long-running legal and political confrontations with federal agencies, raising renewed questions about data security, accountability, and the boundaries between public office and private grievance.