United States President Donald Trump has initiated a major legal action against the Internal Revenue Service and the US Treasury Department, filing a lawsuit seeking damages of $10 billion. The suit alleges that the federal agencies failed to safeguard his confidential tax records, leading to an unlawful disclosure of sensitive financial information to media outlets between 2018 and 2020.
According to the court filing, Trump claims that both his personal tax returns and those of the Trump Organisation were improperly accessed and leaked during his presidency. The lawsuit argues that the agencies had a legal duty to protect taxpayer information and failed to take adequate steps to prevent the disclosure.
The complaint states that the alleged leak caused significant reputational and financial harm to Trump and his businesses. It claims that the disclosure subjected him to public embarrassment, unfairly damaged the reputation of the Trump Organisation, and portrayed both the former president and his business interests in a false and misleading manner. The filing further argues that the incident negatively affected Trump’s public standing during and after his term in office.
The lawsuit names both the IRS and the Treasury Department as defendants, asserting that internal controls and oversight mechanisms were insufficient to prevent unauthorised access to protected taxpayer data. Trump’s legal team contends that the breach violated federal laws governing taxpayer confidentiality, which impose strict penalties for unauthorised disclosures.
This legal action follows earlier controversies surrounding the release of Trump’s tax information, which became a subject of intense public and political debate during his presidency. Trump had long resisted calls to make his tax returns public, breaking with a tradition followed by most recent US presidents. When portions of his tax data were later reported by media organisations, questions were raised about how the information was obtained.
While the lawsuit focuses on the alleged failure of federal agencies, it does not name specific individuals responsible for the leak. The filing instead places responsibility on institutional safeguards and oversight at the IRS and Treasury Department, arguing that systemic lapses allowed the breach to occur.
Legal experts note that cases involving taxpayer data leaks are complex and often hinge on proving both negligence and direct harm. The $10 billion damages claim reflects the scale of injury Trump says he suffered, although courts typically scrutinise such figures closely during proceedings.
The IRS and the US Treasury Department have not publicly responded to the lawsuit at this stage. The case is expected to move through preliminary legal processes, including motions to dismiss or limit claims, before substantive hearings take place.
The lawsuit adds to a growing list of legal battles involving Donald Trump, who continues to remain a central figure in American politics. The outcome of the case could have broader implications for how federal agencies handle taxpayer data and enforce confidentiality protections in the future.
