Treasury Secretary Sidesteps Questions on Trump IRS Audit Deal After DOJ Signals Protections Still Stand

Treasury Secretary Scott Bessent repeatedly declined Wednesday to say whether President Donald Trump, his family and related business entities remain shielded from IRS audits under a controversial settlement agreement that has already prompted bipartisan criticism and multiple legal challenges.

Appearing before the Senate Finance Committee, Bessent refused to directly answer questions from Democratic lawmakers about whether the administration still intends to uphold a provision tied to Trump's settlement with the Internal Revenue Service that would halt certain tax audits and enforcement actions involving the president.

"There's continuing litigation, and I'm unable to comment on ongoing litigation," Bessent told lawmakers, as The Associated Press reports.

The exchange came one day after Acting Attorney General Todd Blanche said the administration was abandoning plans for a proposed $1.8 billion "Anti-Weaponization Fund" that had been created as part of the same settlement agreement. The fund, which faced backlash from both Republicans and Democrats, was intended to compensate people who believed they had been improperly targeted by the federal government.

While Blanche said that the administration would no longer move forward with the compensation fund, he also indicated that the portion of the settlement involving IRS audit protections for Trump and his family remained intact, saying "nothing has changed with that."

Sen. Ron Wyden, D-Ore., pressed Bessent on whether "the IRS audit immunity given to Trump, his family, and his businesses still stand." Bessent again declined to answer directly, citing unresolved litigation surrounding the settlement.

Sen. Catherine Cortez Masto, D-Nev., also questioned Bessent about whether other taxpayers affected by the leak of confidential tax information by former IRS contractor Charles Littlejohn would receive the same protections. Bessent responded that Treasury was represented by the Justice Department in the matter and said, "we will follow the instructions and the settlement," as CNBC reports.

The hearing also drew attention to Bessent's role at the IRS. Although he said he is not the agency's acting commissioner, Bessent acknowledged that he is currently "performing the duties of the commissioner" because the position remains vacant.

The broader settlement stems from Trump's lawsuit against the IRS over the disclosure of his tax records. Critics of the agreement have argued that the arrangement could improperly shield the president from federal tax scrutiny. According to previous reporting cited by the Associated Press, a longstanding IRS audit involving Trump's tax practices could have exposed him to an estimated $100 million tax bill if wrongdoing had been found.