US judge voids Trump's $1.8bn IRS settlement, refers lawyer for discipline

A U.S. federal judge has nullified a $1.8 billion settlement between Donald Trump and the Internal Revenue Service (IRS), citing that the lawsuit was initiated for "improper purposes." U.S. District Judge Kathleen Williams found that the agreement, which also granted Trump and his associates immunity from future tax audits, represented "collusion" rather than a legitimate dispute between opposing parties.

The voided settlement stemmed from a $10 billion lawsuit filed by Trump against the IRS earlier this year, alleging the agency failed to protect his confidential tax information after a contractor leaked it. As part of the agreement, a nearly $1.8 billion "anti-weaponization fund" was proposed to compensate individuals claiming unfair targeting by the government, a plan that faced widespread criticism and was subsequently abandoned.

Judge Williams also referred one of Trump's lawyers to state bar authorities for potential disciplinary action regarding ethical violations. This ruling prevents the settlement's terms from being cited in future legal proceedings, potentially opening the door for the IRS to pursue further audits into Trump's tax claims.