Trump-linked companies deny coverage under disputed IRS settlement: Report

Several companies linked to US President Donald Trump have said they are not covered by a controversial tax settlement between Trump and his administration, following an inquiry launched by senior Senate Democrats, CBS News reported.

The settlement, finalized by the Justice Department in May, resolved a lawsuit filed by Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization against the Internal Revenue Service and the Treasury Department, according to the report on Wednesday.

Under the agreement, the IRS is permanently barred from pursuing claims against Trump, his two sons and the Trump Organization arising from tax returns filed before the settlement took effect.

A document signed by acting Attorney General Todd Blanche on May 19 said the government was “forever barred and precluded” from pursuing such claims. It also stated that the settlement applied to trusts, related companies, affiliates and subsidiaries.

That language prompted Senate Democrats Elizabeth Warren, Chuck Schumer and Ron Wyden to ask 11 Trump-affiliated businesses and organizations whether they believed they were protected from audits, civil penalties or prosecution under the agreement.

Trump Media and Technology Group, prediction-market companies Kalshi and Polymarket, mining company Kaz Resources, defense firm Powerus and cryptocurrency miner American Bitcoin said they were not parties to the settlement or distanced themselves from its provisions, according to letters obtained by CBS News.

A lawyer representing Trump Media, which operates the Truth Social platform, said the company was not a party to the settlement and was unaware of any provision applying to it.

The senators also contacted cryptocurrency venture World Liberty Financial, investment firm 1789 Capital, private aviation company Tag Air, robotics startup Foundation Future Industries and the Trump Organization.

Those entities did not respond to the inquiry, Warren’s office said.

Warren argued that the lack of responses raised concerns that some Trump-linked businesses could seek to invoke the agreement to avoid federal scrutiny.

The controversy has also complicated Blanche’s permanent confirmation as attorney general. Republican Sen. John Cornyn said the settlement appeared to provide Trump with protection from audits unavailable to other taxpayers.

The agreement followed a lawsuit accusing the IRS and Treasury Department of unlawfully allowing a government contractor to disclose Trump’s tax returns to media organizations in 2020.

Senate Democrats, who remain in the minority, do not have the authority to subpoena Trump, his relatives or the companies involved as part of the inquiry.