EXCLUSIVE: Federal Judge Sanctions Trump Lawyers After Finding $10Billion IRS Lawsuit Was 'Collusive' and Filed for an 'Improper Purpose'
President Donald Trump's $10billion lawsuit against the IRS came under sharp criticism.
July 13 2026, Published 7:45 p.m. ET
A federal judge has sanctioned attorneys representing President Trump after issuing a blistering 56-page order finding the president's $10billion lawsuit against the Internal Revenue Service and Treasury Department was "collusive," "non-adversarial," and filed for an "improper purpose," RadarOnline.com can reveal.
According to court documents obtained by Radar, the extraordinary order stems from Trump's January 2026 lawsuit against the IRS and Treasury Department over the unauthorized disclosure of his tax information by former IRS contractor Charles Littlejohn, who pleaded guilty and was sentenced to prison in a separate criminal case.
$10Billion Lawsuit Filed As 'Improper Purpose'
The judges order stems from Trump's January 2026 lawsuit against the IRS and Treasury Department over the unauthorized disclosure of his tax information.
But rather than focusing on the underlying tax leak, the court scrutinized how the civil lawsuit unfolded, ultimately concluding the parties were never truly adverse to one another as required under Article III of the U.S. Constitution.
The judge found there was "never a genuine case or controversy," determining the lawsuit was used to lend judicial legitimacy to a proposed settlement involving sweeping protections for Trump and billions of dollars in taxpayer funds.
According to the order, the proposed resolution included a formal government apology and the creation of a $1.776billion "Anti-Weaponization Fund" that would have been financed through the Treasury Department's Judgment Fund.
Immunity Protections and Public Funds
Donald Trump Jr. and Eric Trump were co-plaintiffs alongside their father in the $10billion lawsuit.
The court questioned the legality of the arrangement, writing that the litigation was allegedly used to provide legitimacy to an agreement involving immunity protections and public funds before the case was voluntarily dismissed.
The order further found Trump exercised control over the executive agencies he sued while serving as president, leading the court to conclude the lawsuit lacked the genuine legal opposition required in federal court.
As part of the ruling, the court imposed sanctions against attorneys involved in the litigation. Trump attorney Alejandro Brito was referred to the Florida Bar for possible disciplinary proceedings, while Attorney Daniel Epstein was barred for one year from seeking permission to practiced before the US District Court for the Southern District of Florida
Court Blocks Trump and His Kids Donald Jr and Eric
The judge's order also prohibits Trump, Donald Jr., and Eric from relying on the disputed settlement agreement in future official proceedings.
The court also prohibited President Trump, his sons Donald Jr. and Eric Trump, and the Trump Organization and their representatives from relying on or citing the purported settlement agreement in future judicial, administrative, regulatory, or arbitration proceedings.
In reaching her decision, the judge pointed to the unusual course of the litigation, noting the government never filed a substantive legal response challenging Trump's claims before the parties announced a settlement.
The order contrasted that approach with other lawsuits arising from Littlejohn's unauthorized disclosure of taxpayer information, where the government aggressively raised statute-of-limitations defenses and other legal challenges.
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This case was filed for an improper purpose instead of resolving a legitimate legal dispute between genuinely opposing parties.
The judge ultimately found the lawsuit violated Rule 11, concluding the case was filed for an improper purpose instead of resolving a legitimate legal dispute between genuinely opposing parties.
The explosive order marks one of the sharpest judicial rebukes connected to litigation involving Trump's administration, with the court questioning everything from the proposed $1.776billion "Anti-Weaponization Fund" to the constitutional legitimacy of the lawsuit itself.
