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Accountancy Slice
North America
President Donald Trump faces a deadline next week to respond to claims that his $10bn lawsuit against the IRS creates a major conflict of interest, as critics argue he effectively controls both sides of the case. Mr. Trump sued the IRS and the Treasury Department in January, seeking damages over the illegal leak of his tax records by former IRS contractor Charles Littlejohn, who was sentenced to five years in prison. The lawsuit alleges violations of the Privacy Act and other tax laws, and demands $10bn for disclosures made to media outlets including The New York Times and ProPublica. A group of former government officials has asked a federal judge to intervene, arguing that as president, Mr. Trump oversees both the IRS and the Justice Department - the agency responsible for defending the government in court. They warn the case risks becoming “collusive litigation” and have urged the court to appoint an independent party or pause the case until Mr. Trump leaves office. They also argue the damages claim is excessive and may fall outside the statute of limitations.
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