US judge cancels Trump’s $1.8bn tax deal

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US judge cancels Trump’s $1.8bn tax deal

On Monday, US Judge Kathleen Williams cancelled a deal between President Donald Trump and US government offices. The deal protected Trump from tax checks. It also planned a $1.8bn (£1.3bn) fund for people who said the government treated them unfairly. Trump agreed to end his $10bn case against the Internal Revenue Service (IRS) in return for this deal.

Trump started the case with two of his sons and the Trump Organization in 2026. He said the IRS did not stop a worker from sharing his private tax records. These records showed that Trump paid $750 in federal income tax in 2016. They also showed that he paid no federal income tax in 10 of the previous 15 years. Judge Williams said Trump and the IRS did not act like two sides in a real legal fight because Trump controls the IRS as president.

The judge said the deal gave special help to Trump and people close to him. She also sent one Trump lawyer to Florida officials for a possible check of his actions. Another lawyer cannot join cases in South Florida for at least one year. The IRS may now check Trump’s taxes again. The government had already stopped plans for the $1.8bn fund in early June after strong public and political criticism.