‘What does he have to hide?’: The DOJ buried a clause in Trump’s settlement that bars the IRS from ever auditing him again

As President Donald Trump stepped off Air Force One on Friday, May 15, he addressed reporters confidently, appearing unbothered by the recent settlement agreement between his administration and the Justice Department. But a closer look at the fine print reveals a surprising clause: the IRS is now permanently barred from auditing Trump, his family members, and his companies.

The Justice Department quietly released a nine-page settlement agreement on Monday, May 18, which included a nearly $1.8 billion fund to compensate victims of alleged law enforcement misconduct. While that was the main focus of the announcement, a one-page addendum posted on the DOJ website the same day went largely unnoticed. This document, signed by Acting Attorney General Todd Blanche, gives Trump a permanent exemption from IRS scrutiny.

“This is awful for transparency,” Politico quotes John Koskinen, the former IRS commissioner from 2013 to 2017. “It makes you wonder what the President has to hide in those tax returns. He’s apparently been actively trading in the stock market and, since he knows a lot more about situations than the average investor, he’s probably generated significant taxable earnings.”

The permanent IRS audit ban raises serious concerns about financial accountability

The addendum explicitly states that the IRS is “forever barred and precluded” from pursuing “examinations” of Trump, “related or affiliated individuals,” and related trusts and businesses. This waiver covers “tax returns filed before the effective date” of the settlement, which was Monday, May 18. The document was prepared or scanned at 7:50 a.m. Tuesday, but it does not carry the signature of any IRS representative or any current Trump lawyer.

When asked about the addendum, the Justice Department said it was “customary in settlements” for both sides to execute waivers of various claims. However, this explanation has raised further questions, especially since the original settlement agreement was signed by Associate Attorney General Stanley Woodward, IRS CEO Frank Bisignano, and Trump attorney Daniel Epstein, but not by Acting Attorney General Todd Blanche. 

Trump’s foreign policy moves have also drawn scrutiny recently, with reports covering his proposed alliance with China and Russia adding to concerns about his administration’s direction. Danny Werfel, the former IRS commissioner from 2023 to 2025, said he was caught off guard by the move. 

“I’m unaware of a single precedent where the IRS has agreed in advance to permanently forgo examination of previously filed tax returns for a specific person or business,” he stated. The development has raised serious questions about the motivations behind the settlement and what it could mean for Trump’s financial dealings. 

With the IRS now blocked from auditing Trump, his family, and his companies, many are left wondering what the tax returns might reveal.  This comes at a time when Xi Jinping’s remarks about America’s decline have sparked fresh debate about the country’s global standing. As the Justice Department continues to defend the settlement, the full extent of this deal remains unclear, and calls for transparency from the public and legal experts are only growing louder.