Trump IRS settlement blocks future probes into his family tax issues

New settlement terms added to a US Justice Department agreement will prevent the Internal Revenue Service from pursuing past tax claims or investigations against US President Donald Trump, his family and related businesses.

The additional language, published Tuesday in a linked document attached to a Justice Department statement, says the federal government is “FOREVER BARRED and PRECLUDED” from bringing “claims” or “examinations” tied to tax matters pending before the IRS before the agreement was signed.

The settlement resolves Trump’s $10 billion lawsuit against the IRS over the disclosure of his tax records by a government contractor.

Critics quickly condemned the move, arguing it creates direct legal protections for the president and his family through agencies controlled by his own administration.

According to CNN, Richard Neal called the arrangement “corruption”, saying Trump had turned the government into “his personal protection racket”.

The Justice Department defended the agreement, with spokesperson Natalie Baldassarre saying: “As is customary in settlements, both sides have executed waivers of a variety of claims that were or could have been brought.”

Officials also stressed the agreement would not prevent audits connected to future tax returns filed after the settlement date.

Acting Attorney General Todd Blanche did not publicly mention the added terms during Senate testimony earlier Tuesday.