A $10 billion lawsuit filed by U.S. President Donald Trump against the Internal Revenue Service (IRS) over the alleged leak of his tax returns has encountered a significant legal hurdle after a federal judge raised questions about whether the case can proceed under the U.S. Constitution.
U.S. District Judge Kathleen Williams has scheduled a hearing to determine whether Trump’s position as a sitting president creates a constitutional conflict that prevents the courts from hearing the dispute. The central issue is whether a president can legally sue federal agencies that operate under his own executive authority.
In a detailed order, Judge Williams noted that although Trump has filed the case in his personal capacity, the defendants are government entities whose actions fall under presidential oversight, raising concerns about whether a true legal “controversy” exists as required by the Constitution.
“It is unclear to this Court whether the Parties are sufficiently adverse to each other to satisfy the case or controversy requirement,” Williams wrote, highlighting the unusual nature of the litigation.
The lawsuit alleges improper disclosure of Trump’s tax records and seeks damages from the IRS. However, the judge pointed to structural complications in the case, noting that executive branch agencies named in the suit are ultimately subject to presidential direction.
Williams also referenced Trump’s past comments acknowledging the unusual nature of the case, including remarks in which he described the situation as “very interesting” and suggested the possibility of donating any awarded funds to charity.
The judge further raised concerns about broader constitutional questions, including Trump’s past efforts to expand executive authority under the “unitary executive” theory, which argues that the president has broad control over the executive branch.
She noted that under certain executive directives, federal employees, including the Attorney General, may be required to align legal positions with presidential views—an arrangement that could undermine the adversarial structure required for court proceedings.
Complicating the case further, Trump’s sons, Donald Trump Jr. and Eric Trump, along with a company linked to the family’s business empire, are also listed as co-plaintiffs in the lawsuit.
Judge Williams has ordered both parties to submit legal briefs by May 20, with a formal hearing scheduled for May 27 to determine whether the case can proceed.
The lawsuit stems from a 2024 criminal case involving IRS contractor Charles Littlejohn, who was sentenced to five years in prison after admitting to leaking Trump’s tax information and that of other wealthy individuals to journalists.
Responding to the judge’s order, a spokesperson for Trump’s legal team condemned the leak but did not directly address the constitutional concerns raised by the court, instead reiterating allegations of politically motivated misconduct within the IRS.
The U.S. Department of Justice has not yet issued a public response regarding the latest court developments.
