Trump and Trump Organization permanently end IRS lawsuit before government responds
Donald J. Trump v. Internal Revenue Service. United States District Court for the Southern District of Florida. No. 1:26-cv-20609-KMW.
Trump, his sons, and the Trump Organization ended their lawsuit against the IRS and the Treasury for good before the government responded, so the case closed without any decision on the actual issues.
Holding
The Trump family filed a notice under Rule 41(a)(1)(A)(i) to voluntarily dismiss the case with prejudice. Since the IRS and Treasury had not yet responded or sought summary judgment, the dismissal took effect immediately and did not require Court approval.
Why It Matters
This is a procedural termination, not a judicial ruling on whether the IRS or Treasury violated taxpayer privacy rules.
"With prejudice" means the same people cannot bring these claims to Court again.
The timing is important because Rule 41 lets them dismiss the case automatically before the government responds.
Each side pays its own fees and costs, so this notice also prevents any arguments over legal fees.
Key Facts
President Donald J. Trump, Donald Trump Jr., Eric Trump, and The Trump Organization sued the IRS and the Treasury in the Southern District of Florida in January this year, seeking $10 billion.
They claimed the IRS failed to protect confidential tax return information and asked for $10 billion in damages from American taxpayers because an IRS contractor, Charles Littlejohn, shared information with news outlets.
On May 18, 2026, they filed a notice to dismiss the case with prejudice, which was recorded as a voluntary dismissal in the Court records.
The notice says the defendants had not yet responded or asked for summary judgment.
Statutory Framework
Federal Rule of Civil Procedure 41(a)(1)(A)(i) lets a plaintiff dismiss an action without a Court order before the opposing party serves either an answer or a motion for summary judgment. A dismissal “with prejudice” operates as a final abandonment of the claims.
Court’s Reasoning
There is no Court reasoning in this filing. The plaintiffs used a rule that lets them dismiss the case on their own, so no judge needed to take action.
Result
The lawsuit ended with prejudice on May 18, 2026.
The Takeaway
This matters because it ends a high-profile tax confidentiality lawsuit without settling the main legal questions.