Trump Appeals Sanctions in $10 Billion IRS Lawsuit
President Donald Trump has asked a federal appeals court to temporarily halt sanctions imposed against him and his attorneys over their handling of his $10 billion lawsuit against the IRS while he appeals the ruling.
According to Accounting Today, Trump filed the request Wednesday with the 11th U.S. Circuit Court of Appeals after U.S. District Judge Kathleen Williams found that the lawsuit had been brought in “bad faith” and that a settlement reached with the Justice Department had no “basis in law.” Williams barred Trump and federal agencies from citing terms of the agreement in official proceedings, ordered Trump to pay his opponents’ legal fees, and referred his attorneys for possible disciplinary action.
In his request for a stay, Trump argued that allowing the sanctions to remain in effect during the appeal “would wrongly leave an unconstitutional speech restraint and career-altering professional sanctions in force.”
Trump sued the IRS earlier this year over the leak of his tax information several years ago. The Justice Department subsequently reached a settlement that included plans for a nearly $1.8 billion fund for victims of alleged government “weaponization,” although Attorney General Todd Blanche later abandoned the fund following congressional opposition.
Separate from the settlement, Blanche issued an order granting Trump, Donald Trump Jr., Eric Trump and the Trump Organization immunity from IRS or Treasury audits, investigations or claims involving past tax filings. That order remains in effect.
Williams ruled last month that the underlying lawsuit was not legitimate because Trump, as president, had authority over both federal defendants, meaning the parties were not legally adverse.
The appeals court will now determine whether Williams’ sanctions can remain in effect while Trump challenges her ruling.