The important principle beneath Trump’s absurd IRS lawsuit
By Chye-Ching Huang
Published on March 25, 2026.
President Trump has filed a lawsuit seeking $10 billion in damages from the federal government over the 2019-20 leaks of his tax returns by an IRS contractor. The lawsuit is dismissed by the leader of an organization promoting the integrity of the tax system, Taxpayer Integrity, arguing that all taxpayers expect the IRS to protect their legally protected tax information. The law provides taxpayers with strong legal recourse when such trust is violated, including monetary damages. However, the actions of the Trump administration have been criticized as an insult to IRS employees who hold taxpayer privacy as sacrosanct. Treasury Secretary Scott Bessent recently entered into a large-scale tax data sharing agreement with the Department of Homeland Security for immigration enforcement, which could undermine voluntary tax compliance and potentially cost over $300 billion over a decade. Taxpayer privacy protections have been built for a half-century, following President Richard Nixon's abuses.
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