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American Focus > Blog > Politics > Trump’s IRS Lawsuit Ruled A Sham, and Judge Orders Sanctions Against His Lawyers
Politics

Trump’s IRS Lawsuit Ruled A Sham, and Judge Orders Sanctions Against His Lawyers

Last updated: July 13, 2026 1:50 pm
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Trump’s IRS Lawsuit Ruled A Sham, and Judge Orders Sanctions Against His Lawyers
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The notion that a sitting president could initiate legal action against their own administration and then negotiate a settlement with themselves using taxpayer funds has always been fundamentally undemocratic and absurd.

Presidents lack the ability to negotiate directly with themselves, yet Trump managed to reach a settlement that prohibited the IRS from auditing him or his family. This agreement also established a fund to financially support his allies who participated in the Capitol attack and attempted to overturn the 2020 election.

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Judge Kathleen Williams stated:

When dismissing the non-parties’ collusion claims, the Plaintiffs exposed their true positions by stating, “Regardless of whether Plaintiffs had ever filed this action, the Government and Plaintiffs still had the power to resolve all disputes between the parties.” (DE 89 at 15). The court was never tasked with determining the power to resolve disputes. The question of whether Executive Branch actors could privately grant themselves and their former clients blanket immunities and billions of dollars in taxpayer funds for grievances that are not legally defined was never presented to this Court.

The core issue was whether the parties could pretend to be adversaries and engage in a court proceeding to claim legitimacy. The answer is a definitive “no”: the Lead Plaintiff and the Government are one, a fully realized unitary interest. Because “Plaintiffs have no answer for the fact that the [L]ead Plaintiff, President Trump, directs and controls the Defendants[,]” this “renders this lawsuit non-adversarial, collusive, and jurisdictionally improper.” See DE 94 at 4.

The Court found this matter was initiated for an improper purpose—to gain judicial legitimacy for a “settlement” that had no legal or factual basis. As noted in another case in this District, “this case is part of Mr. Trump’s pattern of misusing the courts to serve political purposes.” Trump v. Clinton, 653 F. Supp. 3d 1198, 1219 (S.D. Fla. 2023).

The lawsuit was essentially a facade to lend legitimacy to the settlement. However, both sides were aligned with Trump, which is why Trump’s legal team is facing court-imposed penalties.

See also  What Trump’s executive action could do to offshore wind
TAGGED:IRSJudgeLawsuitlawyersordersruledsanctionsshamTrumps
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