Facts Matter – President Trump Sues IRS For $10 Billion in Tax Return Leak Case

Host: Roman (The Epoch Times)
Date: February 18, 2026

Episode Overview

This episode examines President Donald Trump's unprecedented $10 billion lawsuit against the IRS and the Treasury Department over the illegal leak of his tax returns. Host Roman breaks down the case's origins, details about the IRS contractor responsible for the leak, the arguments in Trump’s legal filing, and the significant political and legal complications arising as a sitting president sues parts of his own administration.

Key Discussion Points & Insights

1. Background: The Tax Return Controversy

• Trump's Unreleased Tax Returns:
  • During the 2016 campaign, Trump refused to release his tax returns, claiming he was under audit—a break from decades-old norms for presidential candidates.
  • Media and public speculation persisted throughout his presidency, but “ten years later, that literally came to nothing.” (01:48)
• Leak Details:
  • In his first year in office, Trump’s tax returns were leaked by IRS contractor Charles Littlejohn.
  • Littlejohn used broad search parameters to undermine IRS security, uploading data to a private site and moving files to personal devices—including an iPod—before leaking them to media outlets (NYT and ProPublica).
  • Littlejohn pled guilty and is now serving a 5-year prison sentence (02:48).

2. The Lawsuit: Claims & Allegations

• Filing Details:
  • Trump, his sons Donald Jr. and Eric, and the Trump Organization are all plaintiffs.
  • The lawsuit alleges violation of federal privacy laws and inadequate IRS safeguards.
  • Sought damages: $10 billion.
• Core Arguments:
  • The IRS “failed to take the mandatory precautions to prevent the leak…” (03:45)
  • Example from the suit: If Littlejohn “had all IRS based information in his possession connected to IRS approved cybersecurity programs, they would have detected that he was removing plaintiff's taxpayer information from his devices…” (04:08)
  • The breach “caused Trump, his sons and his organization reputational and financial harm, public embarrassment, unfairly tarnished their business reputations, portrayed them in a false light, and negatively affected President Trump and the other plaintiffs public standing.” (04:45)

3. Conflict of Interest & Trump’s Public Position

• A Sitting President vs. His Own Treasury:
  • Roman notes the extraordinary spectacle of the president suing his own Treasury: “the biggest example of the bully pulpit and practice that I've ever seen.” (01:15)
  • Trump’s response to conflict of interest in an interview:

    "Well, what I would do, tell them to pay me. But I'll give 100% of the money to charity. I don't want any of that money. If I give money to American Cancer Society, I will give 100% of the money away to charity." – President Trump (05:37)

4. Political and Legal Pushback

• Democratic Legislative Reaction:
  • Senator Ron Wyden (D-OR) to introduce legislation to block Trump from any monetary gain, proposing a 100% tax on lawsuit proceeds. (08:10)
• Watchdog & Former Official Actions:
  • Groups (Common Cause, Project on Government Oversight) and four ex-federal officials submitted a brief urging the court to delay the case until Trump leaves office in 2029, citing conflict of interest and that DOJ may not zealously defend the case.
  • The brief also suggests the lawsuit may be time-barred due to being filed beyond a two-year statute of limitations after the 2020 disclosure. (09:00)

Notable Quotes & Memorable Moments

• Roman on IRS breach:

  “Security procedures at the IRS were so inadequate that it took three full years for the IRS to detect the breach of tax records.” (04:25)

• Roman on media coverage:

  “All that airtime, all that newsprint media, and literally nothing. You'd never even think about it.” (01:48)

• President Trump on donating damages:

  “I’ll give 100% of the money to charity. I don't want any of that money.” (05:40)

Important Timestamps

• 00:00-01:48 – Background: Trump’s tax return controversy and media focus
• 01:49-02:48 – Details of the IRS data breach by Littlejohn
• 02:49-04:45 – Lawsuit claims, failure of IRS safeguards, and alleged damages
• 04:46-05:37 – Discussion of conflict of interest; Trump interview quote on donating damages
• 08:10-09:00 – Legislative and advocacy group pushback; time-bar argument

Additional Information

• Host Outreach: The Epoch Times contacted both the IRS and Treasury for comment; neither responded as of recording. (05:50)
• Links: The full 27-page Trump lawsuit PDF is mentioned as available via the episode description.

Summary

Roman lays out the factual and legal landscape of Trump’s $10 billion lawsuit over the IRS tax return leak, detailing its origins, the legal arguments raised, and the extraordinary political and procedural implications of a president suing his own government. The episode is direct in tone, focused on facts, with occasional dry humor and a critical eye on both the media and the complex constitutional issues involved.