President Donald Trump filed a federal lawsuit in Miami on Thursday, seeking $10 billion in damages from the Internal Revenue Service (IRS) and the U.S. Treasury Department.
The complaint alleges the agencies failed to prevent a contractor from disclosing confidential tax records, including those of Trump, his sons Donald Jr. and Eric, and the Trump Organization.
“The IRS wrongly allowed a rogue, politically motivated employee to leak sensitive taxpayer information, exposing millions to unauthorized disclosure,” the lawsuit states.
The legal action centers on Charles “Chaz” Littlejohn, an IRS contractor who leaked Trump’s tax returns in 2020 to The New York Times and ProPublica.
Littlejohn pleaded guilty to a felony and received a five-year prison sentence in 2024.
According to Trump’s attorneys, the IRS had a legal obligation to safeguard taxpayer data, and its failure caused “reputational and financial harm, public embarrassment, [and] unfairly tarnished” the public standing of Trump, his family, and the Trump Organization.
A spokesperson for Trump emphasized that Littlejohn acted independently, calling him a “rogue, politically motivated employee.”
According to CNBC, the statement held the IRS accountable for failing to prevent unauthorized disclosures and criticized media outlets for publishing sensitive information without consent.
The spokesperson stressed that the leak affected not only Trump personally but also the operations and reputation of the family business.
Though the lawsuit does not directly name Littlejohn or his former employer, Booz Allen Hamilton, the Treasury Department canceled all contracts with the firm, citing failures to protect taxpayer information.
Federal authorities noted that Littlejohn admitted in a 2024 deposition to providing detailed records of all Trump-owned businesses to ProPublica.
The complaint argues that the contractor’s actions directly led to widespread distribution of private financial data without authorization.
Trump’s legal history includes several high-profile settlements with media companies.
ABC News agreed to a $15 million settlement in December 2024 over claims related to E. Jean Carroll, while Paramount paid $16 million in July 2025 following a dispute over a 2024 “60 Minutes” interview with then-Vice President Kamala Harris.
Both settlements were designated for Trump’s future presidential library, highlighting his strategy of using litigation to defend his personal and business reputation.
Earlier this month, Trump filed a separate $5 billion lawsuit against JPMorgan Chase Bank and CEO Jamie Dimon, alleging the bank closed his accounts in 2021 for political reasons.
The bank has denied wrongdoing, according to BizPac Review.
Legal analysts say it is rare for a president to sue federal agencies he once oversaw. The $10 billion claim raises questions about timing, conflicts of interest, and statutory limitations.
Federal law generally allows claims for unauthorized tax disclosures only within two years of learning of the breach.
Trump’s team argues that formal notice from the Treasury Department triggered the statute of limitations, making the lawsuit timely and legally justified.
The complaint, filed in the Southern District of Florida, is led by Trump’s personal attorneys, headed by Alex Britto. It seeks compensation for reputational harm, business disruption, and public embarrassment.
The Justice Department will defend the IRS and Treasury, setting up a rare legal clash between a president and the agencies of his own administration.
Observers say the case may set a precedent for how federal agencies are held accountable for safeguarding sensitive taxpayer information.
Experts note the case raises broader questions about privacy protections, media responsibility in reporting leaked documents, and the legal remedies available when federal safeguards fail.
Analysts predict the lawsuit will draw national attention, particularly given Trump’s position as president and the scale of the damages sought.
The litigation is expected to reignite debate over the balance between government accountability, freedom of the press, and the personal rights of taxpayers.
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