Why Are Trump and His Sons Suing the IRS and US Treasury Over Leaked Tax Info?

The lawsuit filed by US President Donald Trump and his two sons against the federal government aims to address the unauthorized leaks of their personal and business tax returns, seeking $10 billion (£7.25 billion) in damages. The complaint alleges that the Internal Revenue Service (IRS) and the Treasury Department failed to protect sensitive financial information from being disclosed, which has led to significant reputational harm and public embarrassment for the Trump family.

Last updated: 15 October 2023 (BST)

What’s happening now

The Trump family has initiated a civil lawsuit in a Miami federal court against the IRS and the Treasury Department, alleging negligence in safeguarding their confidential tax information. This lawsuit comes in the wake of a high-profile leak involving former IRS contractor Charles "Chaz" Littlejohn, who was convicted for disclosing personal tax data, including that of Trump, to media outlets. The allegations highlight significant concerns regarding data privacy and the responsibilities of governmental bodies in protecting sensitive information.

Key takeaways

The Trump family is seeking $10 billion in damages for the leak of tax returns.
The lawsuit accuses the IRS and Treasury Department of failing to protect confidential information.
Littlejohn, the contractor responsible for the leaks, is serving a five-year prison sentence.
Trump’s tax returns have been a point of contention, especially during the 2016 and 2020 elections.
The lawsuit claims reputational and financial harm due to the disclosures.

Timeline: how we got here

Key events leading to the current lawsuit include:

2016: Donald Trump, during his presidential campaign, declines to release his tax returns, citing an audit.
September 2020: The New York Times publishes an article revealing Trump paid just $750 in federal income taxes during 2016.
2022: Trump voluntarily releases his tax returns.
2023: Charles Littlejohn pleads guilty to stealing tax data and is sentenced to five years in prison.
October 2023: The Trump family files a lawsuit against the IRS and Treasury Department.

What’s new vs what’s known

New today/this week

The latest development in the ongoing saga is the formal lawsuit filed by the Trump family, which outlines their grievances regarding the handling and leaking of their confidential tax information. The lawsuit explicitly names the IRS and Treasury Department as defendants, asserting that they had a duty to protect this sensitive information.

What was already established

Previously, it was known that Trump's tax returns were leaked to the media, revealing details about his tax payments and financial dealings. The revelations sparked controversy and discussions about transparency among public officials, particularly presidential candidates. Additionally, Littlejohn's conviction for the leaks has underscored the vulnerabilities of data security within government agencies.

Impact for the UK

Consumers and households

While the lawsuit primarily concerns US entities, its implications may resonate with UK consumers and households. The case raises questions about privacy rights and the safeguarding of personal data, issues that are increasingly relevant in the UK amid ongoing discussions about data protection laws and regulations.

Businesses and jobs

For businesses, particularly those operating in sectors reliant on trust and confidentiality, the lawsuit highlights the importance of data protection. If the Trump family's claims are validated, it may lead to increased scrutiny of how companies manage sensitive information and the potential for regulatory changes in data handling practices.

Policy and regulation

This lawsuit could have broader implications for policy and regulation, especially concerning the responsibilities of government agencies in protecting citizens' information. It may prompt discussions in the UK Parliament about bolstering data protection measures and ensuring that public bodies are held accountable for breaches of confidentiality.

Numbers that matter

£7.25 billion: The amount sought in damages by the Trump family in their lawsuit.
5 years: The prison sentence given to Charles Littlejohn for leaking tax data.
10: The number of years Trump reportedly paid no federal income taxes prior to his presidency.
750: The amount in GBP (£) Trump paid in federal income taxes in his first year as president.
50: The number of years since a presidential candidate had not released tax returns prior to Trump's candidacy.

Definitions and jargon buster

IRS: Internal Revenue Service, the US government agency responsible for tax collection and enforcement of tax laws.
Treasury Department: The department responsible for managing government revenue, including taxes.
Confidential tax information: Sensitive financial details that individuals and businesses are required to keep private.

How to think about the next steps

Near term (0–4 weeks)

In the immediate future, the lawsuit will likely proceed through the court system, with both parties preparing for legal arguments. Observers should pay attention to any preliminary hearings or motions filed by either side.

Medium term (1–6 months)

As the case develops, it may reveal more about the practices of the IRS and Treasury Department regarding data protection. Potential rulings could set precedents for future cases involving data leaks and privacy rights.

Signals to watch

Updates on court dates and decisions regarding motions to dismiss the case.
Public statements from the IRS and Treasury Department regarding their data protection policies.
Responses from legal experts on the implications of the lawsuit for data privacy laws.

Practical guidance

Do

Stay informed about the progress of the lawsuit and its implications for data protection.
Consider the importance of safeguarding personal data in your own financial dealings.
Engage with discussions about privacy laws and regulations in your region.

Don’t

Ignore the potential impact of this case on future data protection measures.
Assume that government agencies are fully equipped to protect sensitive information.
Overlook the relevance of this case to broader discussions about transparency in government.

Checklist

Review your own data protection practices if you handle sensitive information.
Monitor developments in the lawsuit and related policy discussions.
Stay aware of your rights regarding personal data under UK law.
Engage with community discussions about privacy and data security.
Evaluate your own financial transparency and consider the implications of public disclosures.

Risks, caveats, and uncertainties

There are several uncertainties surrounding the lawsuit, including the potential for appeals and the overall outcome of the case. The legal landscape regarding data privacy is constantly evolving, and any ruling may have unforeseen consequences for data protection policies in both the US and UK. Additionally, the motivations and actions of Littlejohn, as outlined in the lawsuit, may be contested, complicating the case further.

Bottom line

The lawsuit filed by Donald Trump and his sons against the federal government underscores critical issues surrounding data privacy and the responsibilities of government agencies. As this case unfolds, it has the potential to influence both public discourse and policy regarding the protection of sensitive information. All eyes will be on the courtroom as the implications of this case could resonate far beyond the individual circumstances of the Trump family.

FAQs

What is the lawsuit about?

The lawsuit filed by Donald Trump and his sons concerns the unauthorized leaks of their personal and business tax returns, seeking $10 billion in damages from the IRS and Treasury Department.

Who is Charles Littlejohn?

Charles "Chaz" Littlejohn is a former IRS contractor convicted for leaking sensitive tax information, including that of the Trump family, to media outlets.

What are the potential implications of this lawsuit?

The lawsuit could set precedents for data protection laws and may prompt discussions regarding the responsibilities of government agencies in safeguarding confidential information.