Trump : Files Major Lawsuit Over IRS Tax Data Disclosure
Trump : Former President Donald Trump has filed a sweeping civil lawsuit against the Internal Revenue Service and the US Treasury Department, alleging serious failures in protecting confidential tax records. The legal action seeks at least $10 billion in damages, stemming from the unauthorized release of Trump’s tax information by a government contractor who later admitted to a felony offense.
Lawsuit Filed in Federal Court
The complaint was submitted Thursday in the US District Court for the Southern District of Florida. Trump is joined as a plaintiff by his two eldest sons, Donald Trump Jr. and Eric Trump, along with the Trump Organization. The lawsuit names both the IRS and the Treasury Department as defendants, asserting that systemic lapses within the agencies enabled a significant breach of taxpayer confidentiality.
Role of Former IRS Contractor
At the center of the case is Charles “Chaz” Littlejohn, a former contractor who worked on assignments linked to the IRS. Littlejohn is currently serving a five-year federal prison sentence after pleading guilty to unlawfully accessing and disclosing protected tax information. Prosecutors previously stated that he sought roles connected to the IRS specifically to gain access to sensitive taxpayer data, which he later shared without authorization.
Claims of Reputational and Financial Damage
According to the lawsuit, the plaintiffs suffered wide-ranging harm as a result of the disclosures. The filing alleges damage to personal and business reputations, financial losses, public embarrassment, and long-term negative effects on public perception. It argues that the unauthorized release of tax information falsely portrayed the plaintiffs and unfairly harmed their standing in both business and public life.
Legal Basis for the Claims
The case relies on federal statutes that allow taxpayers to pursue compensation when government agencies knowingly or negligently disclose protected tax return information. Trump and the other plaintiffs contend that the IRS had a clear legal obligation to safeguard their data and failed to maintain adequate administrative, technical, and physical security measures to prevent misuse.
Scope of the Data Breach
The complaint states that Littlejohn accessed and disclosed tax return information between 2018 and 2020. The affected materials reportedly included Trump’s personal tax records, information related to family members, and data connected to hundreds of entities associated with the Trump Organization. Portions of this information later appeared in investigative reporting published by major media outlets, including The New York Times and ProPublica.
Dispute Over Delayed Notification
A key issue raised in the lawsuit is the timing of official notification. The plaintiffs argue they were not formally informed by the Treasury Department until years after the disclosures occurred that an IRS contractor was responsible. This delay is significant, the filing notes, because federal law generally sets a two-year deadline for bringing such claims. The plaintiffs maintain they had no reason to suspect an internal breach earlier, citing the lack of attribution in initial reporting and an internal review that initially found no IRS involvement.
Damages and Financial Claims
The lawsuit seeks statutory and punitive damages, as well as reimbursement of legal fees. It argues that the scale and duration of the breach — spanning multiple years and involving extensive business entities — justifies damages reaching into the billions. The filing emphasizes that the alleged failures were not isolated incidents but part of a broader breakdown in data protection.
Broader Fallout for Treasury and IRS
The lawsuit follows a recent announcement by the Treasury Department that it is terminating contracts with Booz Allen Hamilton, the consulting firm that employed Littlejohn during his IRS-related work. Federal officials cited concerns about insufficient safeguards for sensitive taxpayer information. While the IRS has not commented on the new lawsuit, the agency has previously acknowledged weaknesses in its data security systems and stated that it has made substantial investments to improve protections.
Related Cases and Agency Response
In a separate civil case brought by hedge fund billionaire Ken Griffin, another victim of the same breach, the IRS issued a formal apology and later reached a settlement. That case highlighted similar concerns about taxpayer data security and contributed to broader scrutiny of IRS safeguards following Littlejohn’s criminal conviction.