Acting Attorney General Todd Blanche has signed an order shielding President Donald Trump, his family and his businesses from all past tax audits by the Internal Revenue Service. The one-page document, released on Tuesday, states that the US government is forever barred from pursuing any claims related to tax returns filed before the settlement's effective date.
Mr Blanche, Donald Trump's former personal defence lawyer, signed the addendum as part of a wider agreement resolving the president's lawsuit against the tax agency. The move, part of the Trump IRS settlement, has prompted immediate questions about conflicts of interest.
Blanche Signs Order Protecting Trump Family From IRS Scrutiny
The provision extends protections to Mr Trump's eldest sons, the Trump Organization and related entities. It effectively halts all ongoing audits and prevents new inquiries into any tax matters that could have been raised in previous years.
The settlement stems from Mr Trump's legal action over the alleged leak of his tax returns by an IRS contractor several years ago. The provision was signed without input from IRS officials. In return for dropping the suit, the administration has agreed to the creation of a $1.7 billion (£1.3 billion) fund aimed at compensating those who claim to have been victims of government weaponisation as mentioned in the New York Post.
The fund, part of what Mr Trump has called an anti-lawfare initiative, was announced on Monday with the tax shield details following a day later.
Settlement Includes Sweeping Tax Immunity Clause
Critics argue the arrangement raises serious legal and ethical issues. Public Citizen, a Washington-based watchdog, described the deal as having crossed the line into illegality. The group warned that implementing the order could place IRS officials at risk of violating their statutory duties.
The group had previously written a letter to the Department of Justice explaining that such a request would be illegal.The development has also sparked widespread discussion on social media platforms. A Facebook reel from ABC World News Tonight stated that the DOJ says the IRS is forever barred from auditing Pres Trump, his family, his business and pursuing claims for past action.
It is part of the settlement after Trump dropped his lawsuit against the IRS. A post from the Financial Times Instagram account explained that US tax authorities will be barred from pursuing claims against Donald Trump, his eldest sons and the Trump Organization under an agreement to halt the president's lawsuit against the Internal Revenue Service.
Lawmakers Grill Acting AG Over Fund and Settlement
Mr Blanche appeared before a Senate appropriations subcommittee on the day the addendum was signed. He faced questions from lawmakers on both sides of the aisle about the fund and broader implications of the deal, though the specific tax protections were not the focus of the hearing.
The development has drawn bipartisan scrutiny on Capitol Hill. The Justice Department has maintained that the settlement resolves long-standing disputes and prevents future weaponisation of federal agencies. However, the lack of involvement from the IRS in signing the document has added to the controversy.
As of 20 May 2026, neither the IRS nor the White House has issued further comment on how the order will be put into practice or its potential impact on ongoing compliance efforts. The case highlights the unusual intersection of personal legal matters and official government policy under the current administration.
