Treasury Secretary Refuses To Answer Questions About Trump's Proposed IRS Audit Immunity

The settlement talks between President Donald Trump and the Internal Revenue Service remain unresolved, and a new development suggests the future of a controversial provision shielding Trump and his family from IRS audits remains unclear.

Treasury Secretary Scott Bessent declined to tell lawmakers during a Senate Finance Committee hearing whether the Trump family would continue receiving immunity from IRS audits under the proposed settlement.

"There's continuing litigation, and I'm unable to comment on ongoing litigation," Bessent said on June 3, according to reporting from the Associated Press.

The uncertainty comes after the Justice Department formally abandoned plans this week to create a $1.776 billion compensation fund that would have paid individuals who claimed they were unfairly targeted by government investigations or prosecutions. The fund had been one of the most controversial aspects of the proposed agreement.

The White House referred the Associated Press to Bessent's comments when asked about the status of the settlement. Speaking to reporters in the Oval Office on June 3, Trump also declined to clarify whether the compensation fund had been permanently scrapped or merely put on hold.

"I'd have to ask the lawyers, I don't know," Trump said. "As far as I'm concerned, it was a beautiful thing."

In April, Trump asked the court to pause the case for 90 days while both sides worked toward a settlement.

"This limited pause will neither prejudice the parties nor delay ultimate resolution," the filing states. "Rather, the extension will promote judicial economy and allow the Parties to explore avenues that could narrow or resolve the issues efficiently."

Weeks after Trump filed his $10 billion lawsuit against the IRS, questions remain about the status of the audit-immunity provision. Acting Attorney General Todd Blanche said June 2 that "nothing has changed" regarding that portion of the proposed settlement.

The legal fight also continues in federal court. Last week, a federal judge in Florida overseeing the case reopened the lawsuit and ordered Trump's attorneys to respond to allegations that the president abandoned his claims to avoid judicial scrutiny of the settlement.

In addition to the compensation fund, Blanche signed an addendum that would "forever bar and preclude" the IRS from reviewing Trump's previous tax returns. Earlier reports found Trump could owe as much as $100 million following audits of prior returns.