President Trump Files $10 Billion Lawsuit Against IRS and Treasury Over Tax Leaks
Washington D.C., Friday, 30 January 2026.
In an unprecedented administrative anomaly, President Trump is suing his own executive agencies for $10 billion, alleging severe reputational harm from unauthorized tax disclosures by a former IRS contractor.
Legal Action Initiated in Miami
On Thursday, January 29, 2026, President Donald Trump, joined by his sons Donald Trump Jr. and Eric Trump, as well as the Trump Organization, formally filed a civil complaint in federal court in Miami [2][4]. The lawsuit names the Internal Revenue Service (IRS) and the Department of the Treasury as defendants, seeking $10 billion in damages for what the plaintiffs describe as a failure to safeguard confidential tax return information [1][4]. The complaint asserts that the agencies’ negligence allowed for the unauthorized inspection and public disclosure of sensitive financial data, resulting in “reputational and financial harm” and “public embarrassment” for the President and his businesses [1][5].
The Breach by Charles Littlejohn
The litigation centers on the criminal actions of Charles Littlejohn, a former IRS contractor employed by the consulting firm Booz Allen Hamilton [3][4]. Littlejohn pleaded guilty in 2023 to stealing tax information associated with President Trump and thousands of the nation’s wealthiest individuals, subsequently leaking the materials to news organizations including The New York Times and ProPublica in 2019 and 2020 [1][3]. He was sentenced to five years in prison in 2024 [2][4]. According to the lawsuit, Littlejohn weaponized his access to the data because he viewed the President as a “threat to democracy,” believing his actions were necessary to challenge political norms [5].
Operational Consequences and Administrative Tensions
This legal maneuver creates a complex administrative dynamic wherein the sitting President is employing personal lawyers to sue the very agencies under his executive purview [4]. The fallout from the breach has already precipitated significant operational changes within the federal government. Earlier this week, the Treasury Department announced it was withdrawing all contracts with Booz Allen Hamilton, accusing the firm of failing to secure taxpayer information accessed through its government work [3][4]. This decision followed a 2024 apology from the IRS to victims of the leak, including hedge fund billionaire Ken Griffin, after the agency made substantial investments to strengthen data security [3].
A Pattern of High-Stakes Litigation
This $10 billion claim is the latest in a series of high-value lawsuits initiated by President Trump against various entities. In July 2025, he sued The Wall Street Journal and Rupert Murdoch for $10 billion, and he has filed a $15 billion defamation suit against The New York Times regarding its 2024 campaign coverage [2]. Furthermore, the President has sought $10 billion from the BBC over edits to a speech clip and $5 billion from JPMorgan Chase over the alleged improper closure of accounts [2]. As the IRS case proceeds in the Southern District of Florida, the President’s personal legal team, led by attorney Alex Britto, is set to face off against the Department of Justice [4].