The U.S. Internal Revenue Service (IRS) will not pursue President Donald Trump, his family, or the Trump Organization for back-tax claims under a settlement agreement announced by the U.S. Justice Department on Tuesday. According to the agreement, the IRS is “forever barred” from bringing tax claims against Trump, his family, or his businesses that were pending as of the May 18 settlement date.

The case traces to a January lawsuit in which Trump, his sons Eric Trump and Donald Trump Jr., and the Trump Organization sought $10 billion in damages. The lawsuit followed the leak of Trump’s tax returns and alleged misconduct by the IRS. In 2023, a former IRS contractor pleaded guilty to leaking Trump’s tax returns and those of other wealthy Americans to the media and received a five-year prison sentence.

Trump dropped the lawsuit on Monday after agreeing to the creation of a $1.7 billion compensation fund for people who say they were unfairly prosecuted in the Biden administration era. The settlement includes provisions limiting eligibility for Trump himself, while the fund’s purpose and administration are defended by Acting Attorney General Todd Blanche, including statements that applicants can come from any group alleging “weaponisation.”