The Justice Department finalized a tax settlement with Donald Trump in May to resolve a lawsuit brought by Trump. The Internal Revenue Service is permanently barred from pursuing claims against Donald Trump, Donald Trump Jr., Eric Trump, and the Trump Organization based on prior tax returns.

A one-page document signed by Acting Attorney General Todd Blanche and dated May 19 stated that the defendants in the president's lawsuit, the IRS and the Treasury Department, are "FOREVER BARRED and PRECLUDED" from prosecuting or pursuing any and all claims related to tax returns filed before the settlement took effect. The Treasury Department is a United States federal executive department that was established in 1789. Acting Attorney General Todd Blanche wrote that the settlement applies to parties including trusts, parent, sister, or related companies, affiliates, and subsidiaries.

Senator Elizabeth Warren, Senate Minority Leader Chuck Schumer, and Senate Finance Committee Ranking Member Ron Wyden sent letters to 11 businesses and organizations with ties to the Trump family regarding the tax audit provision. The businesses that received letters from the senators included Kaz Resources, Powerus, World Liberty Financial, American Bitcoin, Foundation Future Industries, 1789 Capital, Tag Air, Polymarket, Kalshi, and Trump Media and Technology Group. Donald Trump, his children, and his companies were not required to answer the questions posed by the senators. Democratic senators lack subpoena power because they are in the minority.

Representatives from Trump Media and Technology Group, Kalshi, Polymarket, Kaz Resources, Powerus, and American Bitcoin stated in letters to senators that they are not party to the IRS settlement or are not aware of its applicability to them. Trump Media and Technology Group operates the Truth Social platform and is majority owned by a trust that lists Donald Trump as a beneficiary. Donald Trump Jr. sits on Polymarket's advisory board.

Donald Trump Jr. is a partner at 1789 Capital, which has invested in Polymarket. Kalshi announced that Donald Trump Jr. would be a strategic adviser.

The Trump Organization, World Liberty Financial, 1789 Capital, Tag Air, Inc., and Foundation Future Industries did not respond to the senators' letters. "Several Trump-tied companies failed to respond to our basic questions about this corrupt agreement, raising real concerns that they plan to use it as a get-out-of-jail-free card," Warren said. "Americans deserve answers and accountability now."

Senator John Cornyn stated that a proposed meeting with Todd Blanche had been called off. "The IRS settlement deal provides immunity [to Mr. Trump] from audits that no other taxpayer could possibly get," Cornyn said. Senator Thom Tillis has indicated he is closer to supporting Todd Blanche's confirmation.

The settlement bars the IRS from pursuing tax claims against Donald Trump and affiliated entities, raising questions about how the agreement's application to trusts and related companies will be interpreted in future audits. The inquiry by Senate Democrats shows concerns that Trump-linked businesses may exploit the settlement, though several entities stated they are not party to the agreement or are not aware of its applicability. The lack of response from five businesses, combined with the Democrats' lack of subpoena power, leaves open whether the agreement will be used as a protective measure for broader business interests.