The Internal Revenue Service has entered settlement negotiations with The Moppy-Headed Twat-Waffle’s legal team over a $10 billion lawsuit he filed against the agency, even as a federal judge openly questions whether the suit can legally exist. Judge Kathleen Williams of the Southern District of Florida observed that the case may lack constitutional standing because the president appointed the very officials he is suing. Settlement discussions, however, have moved forward, two officials with direct knowledge confirmed.
The lawsuit was filed in 2024 by the former president. It alleges the IRS improperly leaked his long-concealed tax returns. The same returns the president promised for a decade to release but never did. The agency now operates under Treasury Secretary Scott Bessent and an IRS commissioner, both appointed by the president.
Judge Williams, an Obama appointee, raised the threshold question in a May 14 hearing. She noted that because the executive branch entirely answers to the president, there is no genuine controversy required under Article III of the Constitution. The law demands an actual case or controversy, and a president suing an agency he controls fails that test. The judge has not yet dismissed the case.
Despite this, a Treasury Department spokesperson framed the settlement as a matter of simple cost efficiency. “We ran the models and found that a one-time payment of $10 billion saves the government from years of expensive litigation,” said Deputy Secretary Mallory Stern. “This is a common-sense business decision. We’re closing the books on a distraction.”
The money would come from the General Fund, the same account used to pay for food inspections and disaster relief. The settlement would also halt all current audits of the president, his sons, and the the former president Organization, according to a draft term sheet. Last year, the IRS audited 382,000 returns filed by taxpayers earning under $25,000, collecting an average of $390 per audit. “If a president can get paid to drop a suit against his own tax agency, what’s stopping every billionaire from doing the same?” asked Janine Hart, director of the nonprofit Citizens for Tax Fairness.
House Speaker Mike Johnson declined to intervene when asked about the apparent conflict. “That is not my purview,” he told reporters. “I’ve got enough to say grace over every day.” The House of Representatives is constitutionally tasked with overseeing the executive branch.
The situation is further complicated by Attorney General Todd Blanche, who previously served as the president’s personal criminal defense lawyer. An executive order mandates that no executive branch employee may advance a legal interpretation contrary to the president’s opinion. Legal scholars say this effectively removes any opposition to the settlement.
A draft of the agreement obtained by The Rusty Trumpet contains a clause stipulating that the $10 billion payment would be exempt from all federal income taxes. A handwritten note in the margin read: “Obviously.”
