President Donald Trump moved to voluntarily dismiss his $10 billion lawsuit against the Internal Revenue Service on Monday, according to a court filing in federal court in Florida. The lawsuit alleged damages from the leak of his confidential tax records.

The dismissal came just two days before a May 20 deadline set by the overseeing judge, who had asked both parties to brief whether a legitimate controversy existed for the lawsuit, given that Trump now controls the IRS as president. Trump's lawyers stated in the brief filing that "no judicial analysis is appropriate" upon filing the dismissal notice.

Trump originally filed the lawsuit alleging that the Treasury Department and IRS unlawfully allowed a government contractor to leak his tax returns and those of his sons and company. The suit claimed the leaks caused "reputational and financial harm, public embarrassment" and negatively affected their business reputations and public standing. The president's sons, Donald Trump Jr. and Eric Trump, were also named as plaintiffs.

The case stems from leaks by former IRS contractor Charles Edward Littlejohn, who was sentenced to five years in prison in 2024 after pleading guilty to leaking tax information about Trump and others to news outlets between 2018 and 2020. The leaked information led to reports that Trump paid $750 in federal income tax in his first year as president and no income tax in some years.

Reports have emerged suggesting Trump may be considering a settlement with the federal government that would create a $1.7 billion fund to compensate allies who claim they were wrongfully targeted by the previous administration. However, the court filing made no mention of any potential settlement terms. In April, Trump's lawyers had requested a 90-day pause in the case to explore settlement possibilities.

The reported compensation fund has drawn criticism from Democrats, including Rep. Jamie Raskin, who called the idea "unconstitutional" and described it as "a political grievance fund that Donald Trump can use to pay off his friends." Ethics watchdog groups and some lawyers have also filed briefs expressing concerns about the case.