Trump's IRS Immunity Explained

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By Steven Maikoski, Author: “The Real Constitution and its Real Enemies”
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5-25-26 Newsletter

The Trump family has been given immunity from future IRS audits, which has become a driving force for more political attacks from the leftists.  This article, pulled from X site’s Insurrection Barbie, provides the best explanation I have read.  

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“When Donald Trump was a private citizen, a government contractor stole his private tax data and leaked it to the media. Because the government failed to protect his private records, Trump and his family sued the IRS for $10 billion.

On May 18, 2026, the Justice Department settled the case. Trump agreed to walk away with ZERO dollars for himself or his family.

In exchange, the US government put $1.776 billion (part of Trump’s LEGAL settlement award) into an “Anti-Weaponization Fund” to help ordinary citizens who say they were also unfairly targeted by federal agencies. The government also agreed to completely drop its ongoing tax audits against Trump’s businesses.

Trump would have been legally compensated the $1.776 billion from what’s called the Judgment Fund. Congress created the Judgment Fund in 1956 precisely to pay out monetary settlements and judgments reached against the federal government without needing a new, separate congressional appropriation every single time.

Trump basically declined the $10 BILLION he was statutorily entitled to under 26 U.S.C. § 7431 and converted a settlement into a compensation pool for other citizens, so calling this a corrupt enrichment scheme is factually backwards. Nobody is reporting this truth!

If anyone else got that award they would have taken it and ran - including Joe Biden and every other Democrat out there.

The fund’s text explicitly says “there are no partisan requirements to file a claim,” meaning Democrats, Independents, and Republicans are equally eligible.

The audit waiver is bound to pre-May-18-2026 conduct, not “perpetuity immunity forever” as the ridiculous media and out of job former attorney Liz Oyer claims.

Biden pardoned Hunter for crimes he was actually convicted of and Jim Biden while Jim was under two active federal investigations, with an 11-year window and zero public-facing remedy and the same commentators called that defensible. Literally.

So the Biden family could issue pardon for crimes committed and active investigations - but Trump, who was actually agreed and is statutory entitled to this money, set up a fund to help Americans who were victims of political persecution, and the demented media is calling it some kind of corrupt act?

Of course that same demented media wants judicial oversight. Would that be the judicial oversight that consistently rules incorrectly in any case involving Trump and gets overruled sometimes 9-0 at the Supreme Court?

Not one prior U.S. president has faced this volume of criminal prosecution, civil litigation, and unauthorized disclosure of confidential financial records simultaneously, so pretending this is a normal political cycle is dishonest BS.

Trump personally receives zero dollars, zero damages, and zero direct financial benefit from the settlement the only thing he gets is the audit waiver as protect protection so he won’t be targeted by the same Weaponized government should they ever get power again.

Congress will never legislatively compensate Jan 6 defendants, FACE Act defendants, or dismissed-case targets, so the choice was this fund or no remedy at all for documented victims of politically motivated federal action.

The administration points to the 2011 Keepseagle v. Vilsack settlement as a direct precedent. Keepseagle was a decades-long class-action lawsuit brought by thousands of Native American farmers who documented explicit systemic discrimination by the USDA. The settlement was strictly overseen, adjusted, and approved by a federal judge. The distribution of leftover funds to nonprofits was explicitly written into the court-approved agreement.

The Obama administration used the exact same Judgment Fund mechanism in Keepseagle $760M, no congressional appropriation and the press called that justice. But it was actually much worse because in the Obama case this settlement was made against the advice of career DOJ officials who thought they could win at court.

The Trump administration and its legal defenders argue that the settlement is a completely lawful, non-partisan exercise of executive authority that provides necessary remedies to a uniquely targeted victim of government misconduct. Acting Attorney General Todd Blanche and administration spokespersons have defended the arrangement using several core arguments.

1. A federal contractor illegally stole and leaked Donald Trump’s private tax information, an action for which the contractor was criminally prosecuted and sentenced to prison.

2. President Trump, his sons, and the Trump Organization agreed to receive exactly $0 in personal monetary damages. Instead of personally walking away with taxpayer money, Trump redirected the statutory value of his claim to help everyday citizens.

3. There are no partisan restrictions. Anyone can apply. It is NOT a MAGA fund.

The media is very dishonest in this country and there’s a lot of experts who are even more dishonest. I am not an expert at anything except research and common sense.

It is just basic common sense that when you have a president like Biden issue blanket pardons for crimes that nobody even knows about that may or may not have been committed on his way out, and the media doesn’t bat an eye, but then you have a President like Trump who is actually wronged and who uses his settlement money to help those who are also politically persecuted smeared as corrupt the problem is the media.

-Insurrection Barbie


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