3 Key Takeaways From Trump’s IRS Settlement & Tax Immunity Controversy

MoneyTaxes3 Key Takeaways From Trump’s IRS Settlement & Tax Immunity ControversyByNathan Goldman,Contributor.Forbes contributors publish independent expert analyses and insights. Nathan Goldman is a tax prof. at NC State Univ.Follow AuthorMay 20, 2026, 03:36am EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.TrumpGetty ImagesLike any other taxpayer, the United States President must file their tax return and pay taxes on their income. However, the outcome of Trump’s recently settled lawsuit may put that into question for Trump and his family. According to CNBC, the lawsuit settlement contains a provision that Trump and his family’s past tax returns cannot be prosecuted, meaning that whatever was paid cannot be challenged by the IRS. This provision puts a select few people in a rare category of individuals who are immune to taxation.President Trump And Income TaxesWhile the President holds a distinguished position in office, he is treated exactly the same when it comes to income taxes. That is, Trump earns money from his position as President and other non-Presidential activities, such as his business dealings; he must pay taxes on those earnings, and he must file his income tax return on or before April 15th. Like any other taxpayer, his tax returns are confidential government documents and cannot be publicly disclosed by the taxing authority. While many Presidential candidates running for office voluntarily disclose their past returns, Trump never did so, which raised scrutiny on his business dealings. The public’s desire to see his tax returns led to leaks of information, most notably via the New York Times. This leak led to a lawsuit by Trump against the U.S. Government, claiming damages for the involuntary disclosure of his tax returns.The Trump v. Internal Revenue Service LawsuitFollowing the disclosure of his tax return information, Donald Trump sued the Internal Revenue Service for $1...