US President Donald Trump (right) and his son Eric Trump (left) depart the White House on their way to Charlottesville, Virginia, in Washington DC on April 10, 2026.
Celal Guns | Anadolu | getty images
President Donald Trump, his two eldest sons and the Trump Organization on Monday dropped their $10 billion lawsuit against the Internal Revenue Service. filed in miami federal court.
The petition filed by Trump’s lawyers did not explain what was the reason for this surprising step.
It comes after controversy over reports that the Justice Department is negotiating a deal with the president under which the federal government could pay $1.7 billion to a fund to compensate Trump associates who have accused the Biden administration of misconduct.
Democratic members of Congress said it would be a “dirty fund.”
CNBC has asked the DOJ whether Trump’s dismissal of the lawsuit is being matched by the government settling his claims out of court.
The lawsuit filed with the court Monday said Donald Trump, Donald Trump Jr., Eric Trump and Trump were voluntarily dismissing the lawsuit against the IRS “with prejudice.”
Plaintiffs with prejudice may not renew the same claims in another civil complaint.
Trump sued the IRS in late January over the leaking of his tax information by IRS employee Charles “Chaz” Littlejohn in 2019 and 2020.
A spokesman for Trump’s lawyers had no immediate comment on the dismissal.
The IRS did not immediately respond to a request for comment.
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