Why Donald Trump Says It’s Acceptable If Taxpayer Funds Are Involved in His IRS Lawsuit

Donald Trump has explained why he believes it is acceptable to pursue a multibillion-dollar lawsuit against the Internal Revenue Service (IRS) and the U.S. Treasury, even though any damages paid by the government could ultimately come from public funds.

The lawsuit centers on the leak of Trump’s tax information, which was disclosed to media outlets in 2020. A former IRS contractor, Charles “Chaz” Littlejohn, pleaded guilty to unlawfully sharing confidential tax records and is serving a prison sentence. Trump and his family argue that government safeguards failed to protect their private financial data.

According to reports from BBC and NBC News, the lawsuit seeks $10 billion in damages. Trump and his legal team say the disclosure harmed the reputations and finances of him and his family members. The suit also claims the leak violated strict federal confidentiality laws that protect taxpayer information.

When asked whether it was fair for taxpayers to effectively fund a lawsuit against their own government, Trump said he intends to donate any money he wins to charity. Speaking to reporters aboard Air Force One, he stated that he would give “100%” of any award to charitable causes. He also argued that unauthorized release of tax returns is illegal and that the person responsible has already been prosecuted.

Trump repeated this pledge in an interview with NBC, saying any funds would go to “good and respected charities.” He suggested that because the money would be donated, the public would not ultimately lose out.

Legal analysts note that U.S. tax law—particularly IRS Code 6103—strictly protects the privacy of tax returns and allows for damages when information is improperly disclosed. Some experts agree that a legal claim exists when confidentiality is breached. However, others question the scale of damages being sought and whether such a large claim is likely to succeed.

Lisa Gilbert of the advocacy group Public Citizen told NBC News that while a grievance may be valid, the size and timing of the lawsuit raise questions. She asked what ongoing harm would justify such a large claim.

Trump’s private attorneys said in a statement that the leak involved “private and confidential information” and that the lawsuit is part of holding institutions accountable. At the time of reporting, the IRS and the Treasury Department had not publicly responded to the claims.

As with any civil lawsuit, the allegations and requested damages will be evaluated through the legal process. A court will ultimately decide the merits of the case and whether any compensation is appropriate.

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