Tax Coda Weekly Digest — February 1, 2026
This week showed how fragile trust becomes once it breaks. Confidentiality failed at scale. Expertise drained away while enforcement remained unchanged. Leadership shifted to match political priorities. Courts stuck to statutory limits even when outcomes felt rigid. And the IRS clarified what income is not, even as the system struggled to explain what it still protects.
1. Trump Family Sues IRS Over Unauthorized Disclosure of Tax Returns
Members of the Trump family sued the IRS over unauthorized disclosure of tax return information by Charles Littlejohn. The complaint alleges the agency failed to safeguard confidential data as required under §6103. The suit seeks $10 billion in damages, payable by the American taxpayers if liability is found.
Why It Matters:
Puts IRS data security failures directly before a federal Court.
Tests the scope of government liability for insider disclosures.
Raises stakes for how §6103 violations are remedied.
Takeaway:
When confidentiality collapses, the consequen…
