Can Donald Trump win $10B IRS lawsuit? Judge’s tough questions spark doubts

President Donald Trump’s $10 billion lawsuit against the IRS over revealing the unauthorised disclosure of his tax returns ran into trouble over the judge's tough questions.

The legal battle centers on the unauthorized disclosure of his tax returns by former IRS contractor Charles "Chaz" Littlejohn, who leaked the data to The New York Times and ProPublica between 2018 and 2020.

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During Friday’s hearing, a federal judge raised the question over the president’s power, stipulated in the Constitution, to sue the federal government he oversees.

Judge’s core arguments

US District Court Judge Kathleen Williams asked Trump’s private attorneys and Justice Department lawyers representing the IRS to reflect on some serious constitutional questions as according to the American legal system the courts only have jurisdiction over “adversarial disputes”. In such disputes, two sides are meant to be truly fighting each other.

As per the judge’s arguments, how this legal battle could be valid when President Trump effectively controls both sides. As a President, he oversees the Department of Justice and the Treasury Department, which is tasked with defending the IRS.

“Although President Trump avers that he is bringing this lawsuit in his personal capacity, he is the sitting president and his named adversaries are entities whose decisions are subject to his direction,” Williams wrote in a four-page order.

“Typically, adverseness is found in a situation where one party is asserting its right and the other party is resisting. Consequently, if there is no adverseness, there is no case or controversy,” Williams added.

When it comes to the nature of the plaintiff in the case, there is another complication. Trump is not the only plaintiff. His sons Eric and Donald Jr. and a company that controls much of the family business empire also involved in this IRS lawsuit.

On the grounds of these arguments, the judge ordered both parties to come up with better explanations to clarify “whether a case and controversy exists” by May, 20. The hearing on this case will be set for May 27 in Miami.

The judge’s intervention comes after both parties earlier requested a 90-day pause to resolve the matter.

Possible impact

The concerns raised by the judge represent a significant hurdle that could derail the lawsuit before it ever reaches a jury or a final settlement.

If the lawsuit fails to justify the "adversarial" requirement, it is possible that the case could be dismissed immediately. Hence, Trump cannot win damages.

If the judge grants a 90-day pause, allowing the parties to proceed with settlement. But this move would push both parties under public and congressional scrutiny.