Judge rules Trump's IRS lawsuit was filed for 'improper purpose,' refers lawyer for discipline

A federal judge has determined that former President Donald Trump's $10 billion lawsuit against the Internal Revenue Service (IRS), concerning the leak of his tax returns, was filed for an "improper purpose." U.S. District Judge Kathleen Williams, in a ruling on Monday, July 13, 2026, criticized the lawsuit as an act of self-dealing and referred Trump's lawyer, Alejandro Brito, to the Florida Bar for potential disciplinary action. She also imposed restrictions on another attorney, Daniel Epstein, and referred Acting Attorney General Todd Blanche and Associate Attorney General Stanley Woodward to their respective bar associations for their involvement in the settlement.

The lawsuit, which sought significant damages, had concluded with a settlement agreement in May that initially included a $1.776 billion "Anti-Weaponization Fund" and granted Trump and his sons immunity from future tax audits; however, this fund was later abandoned due to bipartisan backlash. Judge Williams emphasized that there was no genuine legal controversy between the parties and that the case was an attempt to use the court system to legitimize an agreement conferring immunity and allocating taxpayer money without proper legal foundation. Consequently, she barred the use of the settlement's provisions in any future judicial or administrative proceedings.