Trump Appeals Judge's Order Declaring IRS Lawsuit Bad Faith

President Donald Trump and his legal team filed a notice of appeal on Friday in the U.S. District Court in Miami, challenging a July 13 order by Judge Kathleen Williams. The judge had concluded that the $10 billion lawsuit alleging a leak of Trump’s tax information was filed to obtain a settlement that lacked legal merit, describing it as a “bad-faith” action intended to secure a $1.776 billion fund for alleged victims of government “lawfare.”

In the same filing, Trump, two of his adult sons, the Trump Organization and two attorneys sought reversal of the order, which also referred attorney Alejandro Brito to the Florida Bar for possible disciplinary action. The settlement, which was later abandoned, would have required the Department of Justice to create the fund and to bar IRS enforcement actions against Trump’s past tax returns.

"President Trump continues to hold those who wrong America and Americans accountable," a spokesman for Trump’s legal team said, reiterating the former president’s criticism of the IRS leak.

Trump discussed the issue at a Cabinet meeting at Camp David, noting that the fund had been discontinued but that some senators were still seeking assurances before confirming his nominee for attorney general, Todd Blanche. Senators, including Republican Thom Tillis, have expressed concern that the fund could be revived.

Judge Williams’ order also imposed non-monetary sanctions, stating that the plaintiffs used the lawsuit to obtain access to taxpayer funds and exemption from audits, and referred Brito to the state bar for potential discipline.