Why Trump’s $1.8 Billion IRS Settlement Could Actually Cost Him Money
The Trump administration has established a $1.8 billion fund to compensate individuals claiming unfair prosecution, as part of a settlement with the IRS. However, legal challenges regarding the fund's legitimacy may arise, particularly concerning tax implications for Trump and his family. The fund is intended for those affected by legal actions, but it remains uncertain if Trump will benefit from it financially.
- ▪The Justice Department announced a $1.776 billion fund for victims of lawfare, including those involved in the January 6 riot.
- ▪Trump and his family will not receive any money from the settlement, and they may face tax liabilities if the fund is treated as income.
- ▪Legal experts have raised concerns about the fund's eligibility criteria and potential constitutional violations.
10 outlets in our directory ran this story, first to last over 31 hours. Coverage spans 3 points on the political spectrum — 5 lean left, 3 centre, 1 lean right.
- ▪ U.S. government to drop tax claims against Trump in broadening of IRS settlement — NPR Topics: News
- ▪ IRS will not pursue Trump for back taxes under settlement agreement — France 24 (EN)
- ▪ US drops tax claims against Donald Trump under IRS settlement — Times of India — Top
- ▪ Justice Department agrees not to pursue any tax claims against Trump as part of IRS deal — NBC News — Politics
- ▪ US to drop tax claims against Trump ‘forever’, in IRS lawsuit deal — South China Morning Post
- ▪ U.S. to permanently drop tax claims against Trump in broadening of IRS lawsuit settlement — The Globe and Mail
- ▪ US justice department ‘forever’ bars IRS from auditing Trump’s tax returns — The Guardian — US
- ▪ Trump Settles His Own Lawsuit Against the IRS for $1.8 Billion of Your Money — Reason Magazine
- ▪ Trump, DOJ settle $10 billion lawsuit against IRS and Treasury Department over leaked tax returns — CBS News — Top
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| Original publisher | Forbes — Business |
| Canonical URL | https://www.forbes.com/sites/alisondurkee/2026/05/18/why-trumps-18-billion-irs-settlement-could-actually-cost-him-money/ |
| Publication time | Mon, 18 May 2026 16:06:32 -0400 |
| Retrieval time | 2026-05-18T20:14:56.949Z |
| Last seen | 2026-05-18T20:14:56.949Z |
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Opening excerpt (first ~120 words) tap to expand
BreakingBusinessWhy Trump’s $1.8 Billion IRS Settlement Could Actually Cost Him MoneyByAlison Durkee,Forbes Staff. Alison is a senior news reporter covering US politics and legal news.Follow AuthorMay 18, 2026, 04:06pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.ToplineThe Trump administration is creating a $1.8 billion fund to compensate people who claim to have been “victims” of unfair prosecution, a condition of President Donald Trump settling his $10 billion lawsuit against the IRS, but a legal fight over the fund’s legality could still be looming—unless Trump is willing to pay taxes on the hefty fund himself.President Donald Trump boards Air Force One on May 15 at Beijing Capital International Airport in…
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