On May 13, reports emerged that the Justice Department was discussing potential settlement terms for President Donald Trump’s $10 billion lawsuit against the IRS. In response, Hillary Clinton accused Trump of “shaking down taxpayers” and declared that the “corruption meter is flashing red” on social media.

The lawsuit, filed in January 2026 by President Trump, his son Donald Trump Jr., Eric Trump, and the Trump Organization, seeks at least $10 billion against the IRS and Treasury Department. It alleges that the government failed to protect confidential tax information stolen by former IRS contractor Charles Littlejohn.

Littlejohn, who worked as an IRS contractor, accessed tax records tied to a high-ranking government official and related individuals between August and October 2019. He used broad search parameters on IRS databases to conceal his target, then uploaded the records to a private website to evade federal security protocols. The stolen data was saved on personal devices including an iPod before being provided to news organizations. Littlejohn also stole tax information for thousands of wealthy individuals and gave it to another outlet.

In October 2023, Littlejohn pleaded guilty to charges related to his actions and was sentenced to five years in federal prison on January 29, 2024. The Department of Justice described his conduct as a betrayal of public trust, with Attorney General Merrick Garland stating that Littlejohn “used his contractor role to access private tax information, steal it, disclose it publicly, break federal law, and betray public trust.”

The Justice Department has indicated that settlement discussions are ongoing but no final decision has been reached.