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Judge says Trump sued IRS for ‘improper purpose’; refers his lawyer to bar

The judge said the case was designed to legitimize a settlement that would shield Trump from audits and direct $1.776 billion in taxpayer money.

  • On Monday, District Judge Kathleen Williams ruled that President Donald Trump's lawsuit against the IRS was filed for an "improper purpose," characterizing it as self-dealing in which he sued an entity effectively under his control.
  • The lawsuit sought to "manipulate the judicial process" by attempting to create an anti-weaponization fund and grant amnesty to the Trump Organization for past tax issues.
  • Williams also criticized the Justice Department, stating it entered a "settlement" that "disregarded DOJ policies" and exceeded legal authority in abdicating its responsibility to defend the United States.
  • The judge referred Associate Attorney General Stanley Woodward and Attorney General Todd Blanche to disciplinary boards in New York and Washington, while a private attorney was referred to the Florida Bar and barred from the Southern District for one year.
  • A spokesperson for Trump's legal team claimed the IRS wrongly allowed a "rogue" employee to leak confidential information to the New York Times and ProPublica, stating Trump continues to hold those who wrong America and Americans accountable.
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ArcaMax Publishing broke the news on Monday, July 13, 2026.
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