Internal Revenue Service lawyers drafted a 25‑page memo in April outlining legal arguments to dismiss President Trump's suit over a tax‑info leak. The paper flagged filing‑deadline issues and the contractor status of leaker Charles Littlejohn, but the Justice Department never used it in court. Instead, the administration agreed to settle the case.

In exchange for Trump withdrawing the claim, the Justice Department created a $1.8 billion “anti‑weaponization” fund to compensate individuals who say they were wrongly targeted by the federal government. Treasury officials signed the agreement, and acting Attorney General Todd Blanche will appoint a five‑member commission to oversee disbursements, though Trump retains the power to replace any appointee.

Critics argue the settlement sidesteps clear legal defenses and funnels taxpayer money toward political allies, including some convicted for the Jan. 6 attack. The IRS, which followed standard procedural steps, saw its memo effectively ignored. The deal closes a lawsuit that sought at least $10 billion in damages and underscores how executive‑branch politics can shape federal financial commitments.