Finance

Judge says Trump sued IRS for ‘improper purpose’; refers his lawyer to bar

Trump’s lawsuit against the IRS was settled by the Justice Department with an agreement to create a $1.8 billion “lawfare” fund that has since been scrapped.​Trump’s lawsuit against the IRS was settled by the Justice Department with an agreement to create a $1.8 billion “lawfare” fund that has since been scrapped. 

U.S. President Donald Trump speaks to members of the press aboard the new Air Force One on July 8, 2026.
Win Mcnamee | Getty Images

A Florida federal judge in a blistering order on Monday said that President Donald Trump had filed a $10 billion lawsuit against the Internal Revenue Service “for an improper purpose” — to gain the appearance of “judicial legitimacy” for a controversial settlement with the Justice Department that briefly led to the creation of a $1.8 billion fund to compensate purported victims of prosecutorial misconduct.

Judge Kathleen William referred Trump’s lawyer in the lawsuit, Alejandro Brito, to the Florida bar for consideration on whether Brito should be disciplined in light of the findings in the new order.

Williams also ordered that a copy of her ruling be mailed to the State Bar of New York, of which Acting Attorney General Todd Blanche is a member, as well as to the District of Columbia Bar, of which Associate Attorney General Stanley Woodward is a member.

A spokesman for Trump’s legal team, which includes Brito, in a statement responding to the order, said, “The IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization to the New York Times, ProPublica and other left-wing news outlets, which was then illegally released to millions of people.”

“President Trump continues to hold those who wrong America and Americans accountable,” the spokesman said.

CNBC has requested comment from the Justice Department.

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