President Donald Trump has filed a $10 billion lawsuit against the Internal Revenue Service and the U.S. Treasury Department, alleging the federal agencies failed to prevent one of the most serious taxpayer data breaches in American history. The suit accuses the government of negligence after Trump’s confidential tax information was unlawfully disclosed to news organizations over a multi-year period.
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Lawsuit Details and Plaintiffs
The lawsuit was filed Thursday in federal court in Florida and names Trump, his sons Eric Trump and Donald Trump Jr., as well as the Trump Organization, as plaintiffs. The complaint alleges that the unauthorized release of tax records caused significant reputational and financial harm, public embarrassment, and damaged the plaintiffs’ business interests and public standing.
According to the filing, the disclosures portrayed Trump and his family “in a false light” and had a measurable negative impact on public perception.
The IRS Leak and Criminal Conviction
The tax information was leaked between 2018 and 2020 by Charles Edward Littlejohn, a former IRS contractor employed by Booz Allen Hamilton. Littlejohn provided confidential tax data to The New York Times and ProPublica, in what federal prosecutors described as a breach “unparalleled in the IRS’s history.”
In 2024, Littlejohn pleaded guilty and was sentenced to five years in prison. Prosecutors confirmed that the disclosure violated IRS Code 6103—one of the strictest confidentiality statutes in federal law—designed to protect taxpayer information from unauthorized release.
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Media Use of Leaked Data
The New York Times reported in 2020 that Trump paid little or no federal income tax in certain prior years, while ProPublica published a series in 2021 analyzing discrepancies in tax filings. Subsequently, six years of Trump’s tax returns were released by the Democrat-controlled House Ways and Means Committee, further amplifying public exposure.
Trump’s lawsuit argues that the original illegal disclosures fueled media narratives that harmed his reputation and “adversely impacted President Trump’s support among voters” during the 2020 presidential election.
Treasury Cuts Booz Allen Contracts
Earlier this week, the U.S. Department of the Treasury announced it had terminated contracts with Booz Allen Hamilton. Treasury Secretary Scott Bessent stated the firm failed to implement adequate safeguards to protect sensitive taxpayer data it accessed through IRS contracts.
Littlejohn’s theft was not limited to Trump. Prosecutors confirmed that he also obtained tax records belonging to other high-profile individuals, including Jeff Bezos and Elon Musk.
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Strategic and Legal Implications
The lawsuit raises broader questions about federal data security, contractor oversight, and whether government agencies can be held financially accountable for constitutional and statutory violations. Legal experts note that while the $10 billion figure is extraordinary, the case could set precedent for government liability when taxpayer confidentiality is breached.
It also underscores the risks of outsourcing sensitive federal data to private contractors without robust oversight.
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Conclusion
Trump’s lawsuit places renewed scrutiny on the IRS, the Treasury Department, and the federal government’s handling of confidential taxpayer information. With a criminal conviction already secured and contracts terminated, the case now moves into a civil arena that could redefine accountability for one of the most serious data breaches in U.S. history.
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