Within hours of reports that the Justice Department is considering settling President Donald Trump’s $10 billion lawsuit against the IRS, Hillary Clinton accused Trump of “shaking down taxpayers” and declared that the “corruption meter is flashing red.”

The lawsuit, filed by Trump, his son Donald Jr., Eric Trump, and the Trump Organization in January 2026, seeks at least $10 billion. It alleges that the IRS failed to protect confidential tax information stolen by former IRS contractor Charles Littlejohn.

Littlejohn pleaded guilty in October 2023 and was sentenced to five years in federal prison for disclosing thousands of tax returns without authorization. He accessed IRS systems using broad search parameters to conceal his targets, uploaded records to a private website and personal storage devices including an iPod, and provided the data to news outlets between August and October 2019.

The Justice Department described Littlejohn’s actions as a betrayal of public trust. Acting Assistant Attorney General Nicole Argentieri called it a serious breach of public trust. The Treasury Inspector General for Tax Administration emphasized that Americans have every right to expect integrity from those entrusted with sensitive taxpayer information.

Reports indicate the Justice Department is discussing potential settlement terms, including whether the IRS would drop audits of Trump and his family businesses. However, no formal agreement has been reached, and it remains unclear if a monetary payment would be part of any resolution.