Uncharted territory: IRS gives lifetime shield for Trump and his family

The department has placed the president and his family in a new category of citizenship, where the tax rules that apply to every other American do not apply to him or his family. 

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Columnists

May 21, 2026 - 2:40 PM

President Trump enjoys a moment with Ultimate Fighting Championship fighters on May 6. This week, the U.S. Attorney General declared Trump and his family members will be forever shielded from any investigations regarding their finances. PHOTO BY THE WHITE HOUSE

For decades there have been disagreements among constitutional scholars about whether a president can pardon himself. But Todd Blanche, the acting attorney general, just gave President Trump something even better: pre-emptive exoneration from all potential criminal liability for certain financial crimes. 

He also guaranteed that the federal government would not be able to pursue tax claims against the president (or his family or his businesses).

Mr. Blanche wrote a new chapter in the history of the presidency, elevating the office to a point where Mr. Trump and his family are declared exempt from the rules that apply to his fellow citizens.

The details of this gift were posted on the Department of Justice website on Tuesday. The document is only a single page, and the language is (perhaps intentionally) convoluted, but the meaning turns out to be clear.

The United States agrees that it is “FOREVER BARRED and PRECLUDED from prosecuting or pursuing” President Trump, his eldest sons or any of their businesses. 

The agreement covers matters “whether presently known or unknown” and cases that “have been or could have been asserted” by the government.

This means that the longstanding Internal Revenue Service audit of Mr. Trump, which dates back to his days as a television star and real estate developer, will most likely end on terms favorable to him. An adverse ruling in that case could have cost him more than $100 million.

But that’s just the beginning. The document places off limits the investigation of any tax disputes (or tax crimes) regarding returns that were filed before this week.

If something comes to light in the future about misconduct or malfeasance relating to the Trump family’s tax filings, as long as it took place before the agreement took effect, it cannot be the basis for a prosecution. 

Reinforcing the same point, the agreement states that the government is barred from pursuing “any matters that were raised or could have been raised” in the Trumps’ dispute with the I.R.S.

There will be no cases against the Trumps before the I.R.S. “or other agencies or departments.” 

Could Mr. Trump’s immunity extend beyond taxes? The Justice Department, which brings federal criminal cases, may, as I interpret it, also be barred from charging the Trumps with other crimes.

By issuing a prohibition on federal investigations that might threaten Mr. Trump’s finances, the department has placed the president and his family in a new category of citizenship, where the tax rules that apply to every other American do not apply to him or his family. By my reading, the document explicitly forbids the government from challenging the legality of any trusts, which can survive in perpetuity. In this way, Mr. Blanche’s memo is a gift to subsequent generations of the Trump family.

Mr. Blanche’s largess appeared in the aftermath of Mr. Trump’s $10 billion lawsuit against the I.R.S., which he and his two eldest sons filed in January to demand compensation for the leaking of his tax returns. Since Mr. Trump was both the plaintiff and in control of the defendant agency, the case from the beginning was fatally compromised by a conflict of interest. For that reason, it’s hard to describe its conclusion as a settlement, which implies the end of a lawsuit that involves actually opposing parties.

Another part of the resolution of the case was the creation Monday of a $1.776 billion federal “Anti-Weaponization Fund” to compensate supposed victims of unfair federal investigations. Decisions about who receives payment, and how much, are to be left to a five-member panel, whose members the attorney general will appoint and the president can remove at will.

The likely main claimants on these dollars are the nearly 1,600 rioters at the Capitol on Jan. 6, 2021, whom Trump pardoned on the first day of his second term. As Mr. Blanche testified Tuesday, all of the rioters are welcome to apply, including those who were convicted of assaulting police officers and others who have subsequently committed further crimes.

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