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Law and Government

35 Retired Judges Seek to Reopen Trump’s IRS Lawsuit, May 29

May 28, 2026
10:41 PM
3 min read

Key Points

35 retired federal judges filed motion May 28 to reopen Trump's dismissed $10 billion IRS lawsuit.

Trump dropped case without disclosing $1.776 billion settlement to the judge, judges say.

Settlement bars IRS from pursuing Trump family tax claims before deal date.

Judge Kathleen Williams was already questioning whether lawsuit was legally valid before dismissal.

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Thirty-five retired federal judges filed a motion on May 28 asking a Miami court to reopen President Trump’s dismissed $10 billion lawsuit against the IRS. The judges say the Trump administration deceived the court by dropping the case without mentioning a settlement, then announcing a $1.776 billion “Anti-Weaponization Fund” separately. This matters because it raises questions about whether government deals can bypass normal court review.

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What the Judges Are Claiming

The 35 former judges, appointed by presidents of both parties, wrote that the court was deceived. Trump and his two eldest sons filed the lawsuit in January seeking $10 billion from the IRS for leaked tax records. On May 18, they dropped the case without telling the judge about any settlement. The same day, the Justice Department announced the $1.776 billion fund. The judges say this pattern shows fraud on the court.

How the Settlement Works

Under the deal, Trump gets an apology but no money from the fund. However, the IRS cannot pursue unpaid tax claims against Trump, his family, or his businesses for any period before the settlement. The fund itself will be controlled by a five-person commission to pay others who claim they were wrongly targeted by the government. The judges argue the settlement was never properly presented to the judge for review.

The Court’s Original Problem

U.S. District Judge Kathleen Williams had already questioned whether the lawsuit made legal sense. Trump was both the plaintiff suing the IRS and the president who oversees the IRS as head of the Executive Branch. Judge Williams was preparing to examine this conflict when the case was abruptly dismissed. The judges say reopening the case would allow the court to investigate whether the parties were truly adverse or working together.

What Happens Next

The judges are using Federal Rule 60 to ask Judge Williams to set aside the dismissal and reopen the case. They want the court to investigate whether fraud occurred. The Justice Department called the judges’ filing frivolous, saying it is routine for plaintiffs to dismiss cases without mentioning settlements. Trump’s legal team said he entered the settlement for the benefit of the American people.

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Final Thoughts

The judges’ motion challenges whether the Trump administration can use a settlement to create a $1.776 billion fund without court approval. If the court reopens the case, it could force a full review of the deal’s legality and whether the parties misled the judge.

FAQs

Why did Trump drop his $10 billion IRS lawsuit?

Trump agreed to drop the lawsuit in exchange for the Justice Department establishing a $1.776 billion fund to compensate individuals claiming wrongful government targeting.

Does Trump get money from the $1.776 billion fund?

No. Trump receives an apology but no funds. However, the IRS cannot pursue unpaid tax claims against him, his family, or businesses for pre-settlement periods.

Why do the retired judges think this is fraud?

The judges argue Trump dismissed the case without disclosing the settlement to the court. The Justice Department announced the fund the same day, allegedly hiding the deal from judicial review.

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.

About Author

Author

Danny Kontos

Co Founder

Danny Kontos has been a stock investor since 2007 and co-founded Meyka in 2023. He keeps a small, focused portfolio and only moves when the numbers are hard to argue with. He has waited years on a single position before. Before Meyka, he ran a web hosting company and a mortgage lending platform, so he knows what a well-run business actually looks like under the hood. This article did not come from a news cycle. It came from someone who has been watching this space for a long time.

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