Legal experts question the durability of Trump’s tax settlement amid potential state audits and future IRS scrutiny
By Aiza Moraña
‘Not Worth the Paper It’s Written On’: Trump’s $1.8 Billion IRS Deal Triggers Tax Reckoning Warning
Legal experts question the durability of Trump’s tax settlement amid potential state audits and future IRS scrutiny
By Aiza Moraña
Published 31 May 2026, 12:48 AM BST
A legal settlement between President Donald Trump and the Justice Department over his federal tax records has been described by a former Department of Justice tax litigator as ‘not worth the paper it’s written on’ the moment a new administration takes office. Stuart Bassin, a former Justice Department tax litigator, said the agreement, which halted all active IRS audits on Trump, his family and his businesses, cannot bind future federal or state authorities.
The settlement, which directed $1.8 billion (£1.45 billion) in taxpayer funds to a newly established anti-weaponisation fund, emerged after Trump agreed to drop a $10 billion (£8.1 billion) lawsuit against the Internal Revenue Service following the leak of his tax returns in 2019. Legal analysts are now questioning the long-term durability of the agreement, warning that its protections may prove temporary.