US drops tax claims against Trump in IRS lawsuit settlement deal

WASHINGTON (AP) — The U.S. government will permanently drop tax claims against 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.

As part of the settlement agreement, the U.S. is “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump organization’s current tax issues, according to a one-page document posted to the DOJ website on 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.”

Blanche...