Officials wrote a memo outlining ways to challenge President Trump’s suit against the Internal Revenue Service. The administration is instead creating a compensation fund.

It is true that the judge supervising the case pointed out that while Trump is suing the IRS in a personal capacity, he leads the agency in an official capacity. As such, she has asked both his lawyers and the Department of Justice to file memorandums demonstrating whether there is enough opposition between the two parties to warrant a lawsuit.

President Donald Trump and his family say they are in talks with the Internal Revenue Service, which he oversees, to settle a $10 billion lawsuit without going to trial. After taking office in 2025, Trump filed a lawsuit claiming that an IRS contractor had ...