Trump FOLDS on IRS LAWSUIT after STEALING $1.7 BILLION?!?

Added: 2026-05-16

[00:00:00]Oh, Donald Trump thinks he's smarter than a federal judge in Miami. He's trying to quote unquote settle his uh his dispute with his own Internal Revenue Service for the creation of a $1.7 billion victim compensation fund for all of his allies and cronies and those who they claim in the Trump administration were harmed by do by Joe Biden's weaponization of the Department of Justice. See, Donald Trump sued the his own Internal Revenue Service, controlled by his own Treasury Department that he dominates and controls for $10 billion because his tax returns were leaked to the press and to the public. Tax returns that he should have turned over to the public while he was running for office. And then he sued them for $10 billion. except Judge Williams, a judge here in my backyard in Miami in the United States District Court, federal courthouse down in Miami said, "Wait a minute. I'm not sure I have jurisdiction." AND EVERYBODY SAID, "WHOA, WHAT? YEAH, I don't have jurisdiction if these parties are in collusive relationship, if there's a coordination. If one party, Trump, dominates the other party. There's no adversariness without an adversarial proceeding. I don't have jurisdiction."

[00:01:13]I said that was important because if there was no legitimate lawsuit, how are they going to settle the case? Because there's no proper exchange of consideration to support that agreement.

[00:01:24]Otherwise, he'd be stealing from the Treasury. Well, welcome to stealing from the Treasury edition because Trump's announcement that he's not going to take any of the 10 billion, but he's going to force the Internal Revenue Service to use our taxpayer dollars that they don't have. I don't even know where the IRS is getting this money from, but they're going to take our taxpayer dollars before they turn it over to the Treasury, which is where the Internal Revenue Services revenue collection is supposed to go.

[00:01:53]They're going to take 1.7 billion of it and set up a victim compensation fund controlled by a commission that Trump controls.

[00:02:02]And then whatever's left over, they'll turn back to the federal treasury. He doesn't have the right or the power or the ability to do that under article two. Here come the lawsuits spawning from this decision to try to avoid Judge Williams May 20th deadline. That was the deadline she set to have the briefing from the Department of Justice, the Internal Revenue Service, and Trump about how do I have jurisdiction? Well, they don't want to answer that question and they want to settle before the 20th.

[00:02:29]And and it didn't help them that on the 14th of May, and I have it here. It'll go up in legal AF Substack for um paid subscribers. We have the briefing that the judge required from a former federal judge, a former solicitor general of the United States, and Faith Gay, a top flight uh trial lawyer in New York. She wanted guidance because she said, "I don't have adversary parties here. I need ambacus briefs to guide the court about whether there is a lawsuit here or this is a bad faith attempt to get an advisory opinion." and they filed their brief yesterday and their brief basically lays out the test for the judge to apply and ask the right questions. Is there collusion between the parties? Yes. Is there coordination between Trump and the Internal Revenue Service that he controls? Yes. Is he in a position of control and common control? Yes. Does he dominate over the other party and their decision-making? Yes. I feel like it's like a young Frankenstein when he finally discovers that that that the woman who works in the castle is also the girlfriend of his former of his father. Yes.

[00:03:44]And so with this out there, this brief that just got filed laying out that test and the judge about to rule, they're scrambling over there to try to scrape up $1.7 billion of your and my money, Congress's money to give to the Jan Sixers, the 1600 people who attacked the capital with weapons. If I see one more report from right-wing MAGA about the unarmed people who who most of which didn't storm the capital, what are you talking about? Have you seen the video?

[00:04:16]Have you read the uh the special counsel's report? Have you have you have you read the indictments of the people and seen their own GoPros and videos?

[00:04:27]the people that made it there with armed pitch battle that was that would rival Game of Thrones and medieval times happening in the West Portico, the attacks in the capital, the defacing of our capital, the cries to hang members of Congress. This wasn't a walk in a park. This wasn't Disney.

[00:04:49]And yet they continue to say that and blame the Biden administration for prosecuting people who attacked the capital. What should they do? let everybody do it. You step out of line at a sporting event and you're shown the door or your car or you're held in you're held in detention.

[00:05:07]So, this is going to lead to a series of lawsuits that we will be following closely on legal AF because it violates the Administrative Procedures Act to steal our money, money from the Internal Revenue Service that is owed to Congress.

[00:05:21]It it uh it is a violation of what we call the ultravares. It is outside the power of the presidency. It violates article two. It violates article one of the constitution.

[00:05:35]It violates the separation of powers.

[00:05:37]Presidents can't grab and scoop up money with both hands from the federal treasury and start handing it out to cronies in a fund that he alone controls, in a commission that he alone controls. Where is that congressional authority? Congress can set up an executive agency. The executive can't set up an executive agency or commission.

[00:06:00]It's just mindboggling to me the the depths that he will go to steal money from Americans.

[00:06:06]Billions of dollars. And he thinks it's the cover story is going to be I'm not taking any of the money personally.

[00:06:12]You've got other entities, other Trump entities and organizations and family members that would be entitled to get money back. So, you won't get it personally, but Don Jr. will and Eric will and Trump organization will. Come on. Come on.

[00:06:28]We're going to continue to follow it right here on Legal AF. Um, hit the free subscribe button. Help us to continue to grow this pro-democracy channel. Here's what I think Judge Williams is going to do.

[00:06:40]They're going to try to dismiss this case because you can, let me give you a tutorial. You can settle a private lawsuit without congressional without court oversight. It's a little different when you're suing a government agency, but uh and and there could be an argument that a federal judge needs to provide oversight, especially when she's already argued that there is a a problem of collusion and coordination between the two parties. But if she doesn't have jurisdiction, she's going to be sidelined from approving the settlement anyway.

[00:07:15]Generally, parties, unless it's a class action or a representative action, coordinated action, individual parties can settle their case without having the judge approve. It's the way it is.

[00:07:27]That's what they're banking on. But she can make her own findings. She hasn't yet ruled there's no jurisdiction, you know, so she's got jurisdiction until there's a declaration that she doesn't. So, I think she'll come out firing about this, hold a hearing.

[00:07:43]They're going to try to dismiss the case. I think she'll hold a hearing about it, you know, about why it was why it was filed in the first place. maybe hold the parties that filed their case from the Department of Justice and Internal Revenue Service in contempt or sanction them for having brought this case in the first place. There's many ways she can get involved, then wait for the new lawsuits to spring out. I don't know if it's going to be our friends at Democracy Forward or the American Civil Liberties Union or Mark Elias Democracy Docket. Somebody's bringing a case to protect taxpayer dollars from being exploited and diverted and misappropriated by Donald Trump and his cronies. And we'll cover it all right here on Legal AF. We got a Substack if I mentioned that. And we posted this on Substack for your review for paid members. I do live reports there every day. I do uh we have amazing contributors and writers on Substack.

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[00:08:44]If you can swing being a paid member, all the better. Until my next report, I'm Michael Popock. Can't get your fill of legal AF? Me neither. That's why we formed the Legal AF Substack. Every time we mention something in a hot take, whether it's a court filing or a oral argument. Come over to the Substack.

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