President Donald Trump’s recent settlement with the IRS included an extraordinary order issued by Acting Attorney General Todd Blanche that purportedly shields Trump and his family from liability for tax violations and other federal offenses committed before May 19, 2026.

During his confirmation hearing on Wednesday, July 16, 2026, Blanche repeatedly mischaracterized the nature and extent of this immunity deal. He claimed the protections granted were "typical" of settlements between the IRS and taxpayers, stating, "When we enter into settlements like that, we do it with all kinds of people. It's not just President Trump. It doesn't make any of those individuals above the law."

However, the settlement goes far beyond normal practice. It bars the United States government from pursuing "any and all claims" against Trump or his family related to any matters pending or potentially pending before the IRS, Treasury Department, or other agencies. This immunity could save Trump more than $100 million in back taxes, interest, and penalties, and it extends beyond the plaintiffs who filed the lawsuit to encompass all related claims.

Former IRS Commissioner Daniel Werfel told the Associated Press he was unaware of any prior case in which the IRS agreed to permanently forgo examination of previously filed tax returns for a specific person or business, highlighting the unprecedented nature of the settlement.

Blanche defended the settlement’s legality, asserting it was "completely consistent with the Federal Rule of Civil Procedure 41, which absolutely allows what happened here to happen." He also emphasized that Trump and his family remain liable for any future offenses.

Legal experts have noted the settlement’s broad language covers IRS audits and all other claims the United States might have against the plaintiffs, raising questions about its scope and implications.

Sources