The Justice Department is weighing a settlement in President Trump's lawsuit against the IRS, sources say. The case, filed in January, seeks at least $10 billion after a former contractor leaked the former president's tax returns. Officials are considering terms that could include the agency dropping any audits of Trump, his family or businesses, a move that would directly benefit the former president.

Judge Kathleen Williams in the Southern District of Florida has ordered both sides to file briefs by May 20, probing whether a genuine controversy exists. Legal scholars note that a settlement before the judge rules could sidestep her conflict‑of‑interest analysis. Former IRS and Justice Department officials have filed an amicus brief arguing the suit is untimely and the monetary demand excessive.

If a deal materialises, the payment could dwarf Trump's earlier attempts to extract government funds, potentially adding tens of millions to his net worth. More valuable than cash, an audit waiver would shield him from mandatory presidential tax reviews that have previously exposed zero‑or‑low tax liabilities. The administration declined comment, leaving investors to assess the fiscal impact of any undisclosed settlement.