FX.co ★ Justice Department blocks IRS from auditing Trump’s earlier returns in sweeping deal

The US Department of Justice has barred the Internal Revenue Service from auditing Donald Trump’s past tax returns, his family’s filings, and related companies on an indefinite basis, according to a document signed by acting Attorney General Todd Blanshem.

The order prohibits audits of returns filed before May 18, 2026 and stipulates that the government will permanently forgo the right to bring suits on matters that were, or could have been, raised by tax authorities. The restriction applies solely to current and past inquiries by the department.

Former IRS commissioner Dan Werfel described the decision as unprecedented, saying there is no precedent in US history for the agency to relinquish ex ante its ability to review a specific individual’s filings. Civil rights groups protested, calling the settlement an abuse of authority and a breach of fundamental legal principles.

The directive expanded the terms of a settlement under which Mr. Trump withdrew a $10 billion lawsuit against the government. That litigation followed the publication of his confidential 2019–2020 tax records by a former agency contractor, Charles Littlejohns, who was later sentenced to five years in prison. As part of the agreement, the Justice Department will establish a $1.776 billion fund to compensate victims of politically motivated prosecutions, the document said.