Judge Reopens Trump I.R.S. Suit Amid Questions of ‘Weaponization’ Fund

A federal judge in Miami reopened former President Trump’s $10 billion case against the I.R.S. on Friday. Judge Kathleen M. Williams took this unexpected step to probe deep allegations that the settlement of the lawsuit might have been deceptive.

This ruling was a setback for Mr. Trump, who had previously dismissed the lawsuit voluntarily. It also affected the Justice Department. After Mr. Trump withdrew the suit, senior officials from the Justice Department released agreements establishing a $1.8 billion fund. This fund was likely meant for people claiming victimization by Democrats in government actions.

The deal involved tax advantages for Mr. Trump, his family, and his business interests. Judge Williams’s decision was influenced by court filings from 35 former federal judges. This bipartisan group urged a detailed examination of the settlement’s terms.

Judge Williams, who was appointed by President Obama, had raised concerns about whether the case presented a conflict she could address. Originally, the lawsuit pitted Mr. Trump against a federal agency he oversaw. Upon closing the case, she noted there was no official record of a settlement. Yet the Justice Department had already revealed a settlement agreement.

In her recent directive, Judge Williams expressed a desire to explore Mr. Trump’s settlement efforts. She emphasized her authority to investigate serious misconduct in cases under her jurisdiction. She instructed Mr. Trump’s attorneys to declare by June 12 whether the case deserved to be formally reopened. She sought clarity on whether there was fraud against the court or if Mr. Trump had conspired with his government to bypass judicial review.

The New York Times reported an internal I.R.S. memo with defenses to the lawsuit that the Justice Department never presented in court.

Norman Eisen, representing the former judges, praised Judge Williams’s approach. “The judges and their counsel greatly appreciate the seriousness with which the court is addressing these grievous allegations,” he stated, affirming readiness to assist the court’s investigation.

Alan Feuer reports on extremism and political violence for The Times, focusing on criminal cases linked to the January 6 Capitol attack and former President Trump. Andrew Duehren covers tax policy from the Washington office of The Times.