US government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement

The US government has agreed to permanently drop tax claims against Donald Trump and his associates as part of a settlement to resolve a $10 billion lawsuit over leaked tax returns.

The U.S. government will permanently drop tax claims connected to President Donald Trump, according to a settlement document that is part of a deal to resolve Trump's $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns.

The document says the U.S. is ''forever barred and precluded'' from examining or prosecuting Trump, his sons and the Trump organization's current tax issues, states the one-page document posted to the DOJ website, Tuesday.

The Trump administration announced Monday the creation of a nearly $1.8 billion fund to compensate allies of the Republican president who believe they have been unjustly investigated and prosecuted, an arrangement that Democrats and government watchdogs derided as ''corrupt'' and unconstitutional.

The ''Anti-Weaponization Fund'' of $1.776 billion, will allow people who believe they were targeted for prosecution for political purposes, including by the Biden administration Justice Department, to apply for payouts, creating what acting Attorney General Todd Blanche called ''a lawful process for victims of lawfare and weaponization to be heard and seek redress.''.

According to a separate settlement agreement posted to the DOJ website Monday, Trump will receive a formal apology from the U.S. government but ''will not receive any monetary payment or damages of any kind,'' from the settlement.