President Donald Trump, his sons, and the Trump Organization filed a federal lawsuit Thursday night seeking at least $10 billion in damages from the U.S. Treasury and the Internal Revenue Service, according to Bloomberg Tax.
The suit alleges that Trump’s tax returns from 2017 through 2021 were unlawfully disclosed in violation of federal privacy laws, including protections under 26 U.S.C. § 6103.
The disclosures were traced to Charles Littlejohn, a former IRS contractor working for Booz Allen Hamilton, who pleaded guilty in 2023 to leaking the returns to The New York Times and ProPublica. Littlejohn was sentenced to five years in prison.
The Treasury Department recently severed contracts with Booz Allen earlier this month following the incident.
Treasury Secretary Scott Bessent said the cancellations were due to insufficient protection of sensitive taxpayer data. The contracts totaled about $21 million in obligations and roughly $4.8 million annually. Bessent added that canceling the contracts was part of broader efforts to restore trust in data security after the leak.
Legal analysts say the lawsuit’s demand for punitive damages at this level is rare and could raise new questions about IRS accountability. No immediate response was reported from the defendants.
This is a breaking news story. Please check back for updates.
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