On Friday, a federal judge in Miami made a surprising decision to reopen Donald Trump’s $10 billion lawsuit against the IRS. Trump had previously dropped the case to avoid her examination, but now she has asked his lawyers to explain by June 12th why she shouldn’t conclude that the whole situation was a fraud against her court.
The judge was clear and direct in her language.
She expressed her intention to look into serious claims that the agreement to resolve the case was based on dishonesty. She stated that she had the authority to investigate significant wrongdoing and posed two critical questions: was the court tricked into believing something false, and did Trump work with his own government to settle the case to escape her review?
Based on the information available, it seems the answer to both questions is yes.
Judge Williams had been closely examining this case for weeks before Trump decided to drop it. She had raised concerns about how Trump could sue an agency he oversees, with lawyers who report to him, leading to a settlement negotiated with officials he appointed. She requested both sides to clarify whether they were actually opponents or secretly working together. Trump withdrew the case just a day before they were supposed to submit their explanations.
After the case was closed, the Justice Department released two surprising agreements: one for $1.776 billion to compensate Trump’s allies, and another document that permanently prevents the IRS from auditing Trump, his family, or his businesses.
These agreements seemed to have been negotiated while the case was still active in her court.
Judge Williams referred to a New York Times article that disclosed the IRS had created a 25-page memo with strong defenses against Trump’s lawsuit, which the Justice Department never mentioned in court or filed.
Her decision came in response to a filing from 35 former federal judges, appointed by presidents from both parties, who labeled the scheme a fraud and urged her to reopen the case.
“We are prepared to assist the court in its investigation,” said Norman Eisen, who represented the former judges.
Trump attempted to change the situation before she could examine the evidence. She simply returned everything to the table.
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