Trump suing IRS & Treasury for $10 billion over tax record leak

The lawsuit claims the IRS and Treasury failed to enforce adequate safeguards, supervise contractors, or prevent foreseeable risks, ultimately enabling the breach.

By Eitan Devir, Jewish Breaking News

President Donald Trump has filed a sweeping federal lawsuit demanding $10 billion in damages from the Internal Revenue Service and the U.S. Treasury Department, accusing the agencies of failing to safeguard his confidential tax records and allowing them to be unlawfully disclosed.

The lawsuit, filed this week in federal court in Florida, argues that the government violated long standing taxpayer privacy laws by permitting unauthorized access to Trump’s tax filings.

According to the complaint, the breach caused lasting financial, political, and reputational harm, warranting what Trump’s legal team describes as one of the largest privacy related claims ever brought against the federal government.

The case stems from a major data leak involving an IRS contractor who improperly accessed and shared tax information belonging to thousands of Americans, including Trump and other high profile individuals.

The contractor later pleaded guilty and was sentenced to prison for the illegal disclosures.

Prosecutors said the information was passed to media outlets without authorization, triggering widespread concern over the security of sensitive taxpayer data.

Trump’s attorneys argue that while the contractor was criminally prosecuted, responsibility does not end there.

The lawsuit claims the IRS and Treasury failed to enforce adequate safeguards, supervise contractors, or prevent foreseeable risks, ultimately enabling the breach.

The complaint asserts that the agencies’ actions, or lack thereof, amounted to gross negligence.

In response to the incident, the Treasury Department previously terminated contracts with the consulting firm that employed the contractor, citing breakdowns in internal controls and data protection protocols.

However, Trump’s lawsuit maintains that corrective actions taken after the fact do not undo the damage already caused.

Legal analysts note that the case could have broader implications for how federal agencies handle taxpayer information and how liability is assigned when private contractors are involved.

If successful, the lawsuit could open the door to additional claims by other individuals affected by the same breach.