WHAT CAME BEFORE
6 events that make the settlement look even worse.
Before Trump sued his own IRS, there was the tax return document leak, two secret tort claims, a prosecution, and a legal defense the DOJ would later abandon.
2019 – Sep 2020
THE LEAK
LITTLEJOHN STEALS TRUMP'S TAX RETURNS — TRUMP CALLS IT "FAKE NEWS"
Working as a Booz Allen Hamilton contractor assigned to the IRS, Charles Littlejohn uses his access to tax data to steal Donald Trump's returns and leak them to the New York Times, which publishes articles revealing Trump paid only $750 in federal income taxes in 2016 and 2017. Littlejohn separately steals the returns of thousands of wealthy Americans and leaks them to ProPublica. Trump attacks the articles as "totally fake news" and states the information was "illegally obtained" — posting repeatedly on social media, establishing that he was aware of the disclosure at the time.
"The New York Times did an illegal hit piece on me."— Donald Trump, September 2020
Dec 2022
FIRST LAWSUIT
KEN GRIFFIN SUES THE IRS. DOJ DEFENSE: "WRONG DEFENDANT."
Hedge fund billionaire Kenneth C. Griffin files the first major lawsuit over the Littlejohn leak, targeting the IRS and Treasury under the same federal statutes Trump would later use — 26 U.S.C. §§ 6103 and 7431. The DOJ's response is blunt: because Littlejohn was a contractor, not a federal employee, the government has no liability. The court rejects this defense at the motion-to-dismiss stage. The case later settles in June 2024 — for a formal apology and no money.
COMPARISON
Ken Griffin sued over the same leak, under the same statute, against the same defendant — and received a formal apology. No money. The Trump DOJ settled the identical claim, along with unfiled FTCA claims, for
$1,776,000,000.
Oct 12, 2023
THE PROSECUTION
TRUMP'S OWN LAWYER APPEARS IN COURT — CONDEMNING THE VERY LEAK TRUMP WOULD LATER CLAIM HE HADN'T "DISCOVERED" YET
Littlejohn pleads guilty in federal court to unauthorized disclosure of tax returns. It is a public proceeding covered by every major outlet. Trump's personal attorney, Alina Habba, appears to deliver a victim impact statement on his behalf — calling the leak "an egregious breach by an agent of the IRS who targeted the president of the United States." The Trump v. IRS complaint, filed three months later, would claim Trump did not "discover" the unauthorized disclosure until January 29, 2024 — when the IRS mailed him a notification letter. Habba's court appearance is on the public record. A client's lawyer does not appear in federal court to condemn a crime on the client's behalf without the client knowing the crime occurred.
"This was an egregious breach by an agent of the IRS who targeted the president of the United States, among others, for political purposes and personal gain."— Alina Habba, Trump's personal attorney, speaking in federal court on Trump's behalf · October 12, 2023
TIMELINE NOTE
The
Trump v. IRS complaint (filed Jan. 29, 2026) claims Trump's "date of discovery" was Jan. 29, 2024 — the day he received an IRS notification letter. If the statute of limitations clock started on Oct. 12, 2023 instead, the complaint would have needed to be filed by Oct. 12, 2025. It was filed
109 days late.
Late 2023 – Summer 2024
THE HIDDEN CLAIMS
BEFORE SUING THE IRS, TRUMP FILES TWO SECRET TORT CLAIMS — SEEKING $230 MILLION FROM THE DOJ
While the Littlejohn case plays out in court, Trump files two separate claims against the Department of Justice under the Federal Tort Claims Act — a pre-lawsuit procedure in which a claimant submits a form to the agency before being permitted to sue. The first claim, filed in late 2023, seeks damages for alleged rights violations during the FBI and Special Counsel's investigation into Russian election interference. The second, filed in summer 2024, accuses the FBI of violating his privacy in the August 2022 Mar-a-Lago search and accuses the DOJ of malicious prosecution in the documents case. Together, the two claims seek approximately $230 million in taxpayer dollars. Both remain secret — never made public, never adjudicated, and never opposed. They are quietly withdrawn, alongside the IRS lawsuit, in the May 18, 2026 settlement.
"I'm sort of suing myself."— Donald Trump · Oval Office · January 2026
THE CONFLICT
The officials responsible for approving any FTCA settlement over $4 million — Deputy AG Todd Blanche and Civil Division chief Stanley Woodward — are Trump's own former criminal defense lawyers in the very cases being claimed. The DOJ's top ethics adviser, who could have flagged these conflicts, is fired in July 2025.
Jan 29, 2024
SENTENCING
LITTLEJOHN GETS 5 YEARS. THE IRS MAILS TRUMP A LETTER. THE CLOCK STARTS — SUPPOSEDLY.
Littlejohn is sentenced to the maximum five-year prison term. On the same day, the IRS mails Trump a notification letter informing him that a contractor "has been charged with the unauthorized inspection or disclosure of your tax return." The Trump v. IRS complaint — filed exactly two years later — cites this letter as the moment Trump "discovered" the unauthorized disclosure, triggering the two-year limitations period under 26 U.S.C. § 7431(d). The filing on January 29, 2026 was timed to the day.
THE MATH
The two-year clock under § 7431(d) starts when the plaintiff "discovers" the disclosure. The complaint chose January 29, 2024. Legal commentators and former IRS officials broadly assessed that date as implausible, given the Habba court appearance three months prior and Trump's own social media posts about the leak in 2020.
Jul 23, 2025
THE DEFENSE THEY ABANDONED
WHILE TRUMP'S LAWSUIT IS PENDING, THE DOJ ARGUES AGAINST LITTLEJOHN'S VICTIMS
While Trump v. IRS is pending, DOJ attorneys file a motion to dismiss in Safe Harbor International LLC v. Booz Allen Hamilton — a class action by over 400,000 ordinary taxpayers harmed by the same Littlejohn leak. The government's argument is unambiguous: because Littlejohn was a contractor, not a federal employee, the government has zero liability. The Safe Harbor court denies the motion. The class action continues. The DOJ later chooses to ignore their "contractor defense" in Trump v. IRS — where the defendant, the statute, and the underlying act are identical. The DOJ settles the Trump v. IRS case for $1.776 billion without raising any defense.
UNITED STATES' MOTION TO DISMISS
Safe Harbor International LLC v. Booz Allen Hamilton, Inc.
No. 8:25-cv-00139-LKG (D. Md.) · Filed July 23, 2025
"The United States has not waived its sovereign immunity for the unauthorized inspection or disclosure of return information by persons who are not officers or employees of the United States. Because the person responsible for the alleged disclosures was a contractor — and not an officer or employee of the United States — the Putative Class Plaintiffs' claim against the United States should be dismissed."
─── Same defense, different plaintiff ───
400,000 ordinary taxpayers
harmed by the same leak
DOJ argued: contractor, no government liability.
Motion to dismiss filed.
Donald Trump
harmed by the same leak
DOJ argued: nothing.
Settled for
$1.776B.
With that context in place, here's how the lawsuit happened — and why it never faced the scrutiny it should have.