Acting Attorney General Todd Blanche confirmed Tuesday that the Justice Department will maintain extraordinary protections shielding President Trump, his family and businesses from IRS audits of already-filed tax returns. The decision preserves a controversial agreement that could save the Trumps tens of millions in potential tax liabilities, despite abandoning a separate $1.8 billion compensation fund for alleged victims of government overreach.

Blanche framed the audit protections as standard settlement procedure during testimony before a House Appropriations subcommittee. However, the arrangement diverges sharply from precedent—IRS policy traditionally requires annual presidential audits rather than blanket immunity for completed returns. Legal experts note the scope extends unusually to Trump's 'affiliates,' raising questions about whether an acting AG possesses authority to direct the tax agency.

Senate Republicans loudly opposed the $1.8 billion fund but largely ignored the audit provision's potential value to the president. The protections stem from Trump's $10 billion lawsuit against the IRS, originally filed over leaked tax returns during his first term. A judge recently revived the case amid concerns about deception in settlement negotiations.

The audit shield raises fundamental questions about equal treatment under tax law. Senator Susan Collins acknowledged she hasn't focused on the provision, while Senator Thom Tillis questioned why Trump shouldn't face the same scrutiny as ordinary citizens. These protections effectively halt investigations that could yield substantial financial exposure.