Judge Finds 'Bad Faith' in Trump's IRS Lawsuit Settlement Request

A federal judge in Florida found former President Donald Trump's lawsuit against the Internal Revenue Service was brought in “bad faith” for an “improper purpose.” The judge's decision detailed attempts to manipulate the judicial process through the lawsuit.

In July 2022, Trump filed a lawsuit against the Treasury Department and the IRS. The suit alleged that the IRS selected him for audits based on political motivations. He claimed the IRS targeted him for audits of his 2015 and 2016 tax returns, which the agency selected on the same day he declared his presidential candidacy.

Trump’s legal team presented a settlement proposal. This proposal offered to drop the lawsuit if the IRS commissioner issued a public statement. The statement would acknowledge that the audits were “routine” and not politically motivated. The proposal also requested a court order confirming the routine nature of the audits.

Attorneys for the IRS indicated their willingness to issue a statement acknowledging routine audits. However, they expressed concerns about the court issuing an order confirming the statement’s contents. U.S. District Judge Donald Middlebrooks stated that the proposed agreement would have allowed Trump to generate a public statement appearing to be a court finding. The judge noted that the terms of the settlement “would lend the appearance of judicial credibility to the IRS’s statement.”

Trump’s legal filing referenced an IRS policy that requires the audit of a sitting president's tax returns. However, the audits in question predate his presidency. Judge Middlebrooks pointed out that the 2015 audit began eight months before Trump became president, and the 2016 audit four months before his inauguration.

The judge described the lawsuit as an attempt to use judicial endorsement for political effect. He characterized the proposed settlement as an effort to "publicize and validate the results of a routine audit." Judge Middlebrooks emphasized that the court’s role does not include offering advisory opinions on political matters.

He concluded that Trump’s filing lacked any factual basis. The judge cited no evidence of the IRS violating policy, subjecting Trump to additional scrutiny, or leaking his returns. Middlebrooks determined that Trump initiated the lawsuit to advance a narrative about deep state actors and weaponized government agencies. He stated that the court does not serve as a platform for political agendas.