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The Vault

READ IN FULL: Trump's $10B IRS Lawsuit Blows Up as Judge Accuses President's Team of 'Collusive' Court Scheme

The court sanctioned Trump’s lawyers after finding the IRS lawsuit lacked a genuine legal dispute.

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Keeping Tabs
Jul 16, 2026
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A federal judge has torched President Donald Trump’s $10 billion lawsuit against the IRS, accusing his legal team of orchestrating a “collusive” case that was never a real legal fight in the first place.

In a blistering 56-page order obtained by THE VAULT, the court concluded the lawsuit was filed for an “improper purpose,” sanctioned two of Trump’s attorneys and questioned whether the case was designed to give judicial legitimacy to a proposed settlement worth $1.776 billion in taxpayer funds.

President Donald Trump and Internal Revenue Services

The explosive ruling goes even further, finding there was “never a genuine case or controversy” because Trump was effectively suing executive agencies he controlled as president.

READ THE FULL COURT DOCUMENTS BELOW:

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