Justice Department Blocks IRS From Tax Claims Against Trump, Family Under Settlement

The Justice Department broadened a settlement deal tied to President Donald Trump’s lawsuit against the Internal Revenue Service to include a provision that would prevent the IRS from pursuing past tax claims or audits of him, his family or his businesses, according to The Washington Post.

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Acting US Attorney General Todd Blanche defended the creation of a nearly $1.8 billion “anti-weaponisation” compensation fund at a Senate committee hearing on May 19, after the Justice Department announced it on May 18 as part of a settlement after Trump dropped his lawsuit over the leak of his tax returns.

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Democrats attacked the arrangement as politically motivated, with Senator Patty Murray saying, “This is corruption that has never been more blatant.”

Blanche said the fund was not limited to Trump’s allies and insisted, “Whether you're Hunter Biden or whether you're another individual who believed they were a victim of weaponization, they can all apply to this fund,” as he referenced Hunter Biden’s conviction and later pardon.

At a Senate appropriations subcommittee hearing, Vice President JD Vance and acting Attorney General Todd Blanche declined to rule out Jan. 6, 2021 rioters getting “Anti-Weaponization Fund” payouts, while Vance said requests would be analyzed on a “case-by-case” basis.

ABC News Chief Washington Correspondent Jonathan Karl asked why taxpayers should pay to settle Trump’s $10 billion lawsuit and whether people who “attacked the Capitol building and assaulted police officers” should be eligible for money from the fund.

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Blanche, pressed on whether individuals convicted of violent acts against police officers should receive compensation, said, “My feelings don't, don't matter, senator,” while also telling lawmakers that “Anybody in this country is eligible to apply if they believe they're a victim of weaponization.”

In CNN’s takeaways from Blanche’s testimony, Blanche said, “I will definitely encourage the commissioners to take everything into account when determining who should get compensation,” even as Democrats focused on whether those who assaulted law enforcement officers on January 6, 2021 would be eligible for a payout.

Blanche’s Senate testimony also addressed the Justice Department’s posture on Jeffrey Epstein-related matters, with WION reporting that when asked whether the Justice Department still had open investigations related to Epstein, Blanche replied, “He’s dead.”

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In the same hearing coverage, Blanche said, “Any investigation into potential other bad guys will always be open if we have evidence that supports in any way, shape, or form that we can make a case,” linking future investigative decisions to evidence.

Multiple outlets described the fund’s oversight structure as involving commissioners, with CNN noting that none of the five commissioners overseeing the fund had been chosen yet and that those commissioners would set guidelines for distributing payments.

The Hill reported that Blanche stopped short of guaranteeing that the settlement funds would not go to people who had assaulted police officers or committed a violent crime, and said he expected commissioners to set rules over eligibility and procedures for applying for compensation.