A federal judge in Florida has agreed to reopen President Trump’s lawsuit against the IRS, which seeks $10 billion in damages.
The judge sided with intervenors who argued that a settlement agreement had tainted the original case.
The intervenors specifically contended that the settlement’s creation of an “anti-weaponization” fund compromised the integrity of the proceedings.
The Department of Justice and Trump had previously agreed to voluntarily dismiss the suit against the IRS.
That dismissal came in exchange for the creation of a fund described in court proceedings as an “anti-weaponization” measure.
The agreement between the DOJ and Trump to dismiss the case drew scrutiny from outside parties who moved to intervene in the matter.
Those intervenors successfully persuaded the federal judge that the terms of the settlement warranted further examination before the case could be closed.
The judge’s decision to reopen the case means the $10 billion lawsuit will now face additional judicial scrutiny going forward.
The ruling represents a significant development in a legal dispute that involves both the executive branch and the nation’s primary tax enforcement agency.
The case now returns to active status in a Florida federal court, where further proceedings are expected to determine its ultimate resolution.