A US judge has canceled a settlement between President Trump and the Internal Revenue Service. The IRS collects taxes for the US government.

Judge Kathleen Williams works at the US District Court in Miami, Florida. She ruled Trump's lawsuit was filed for an improper reason.

Williams said Trump cannot use the settlement as evidence in court. This effectively cancels the deal.

The settlement had given Trump his family and his business protection from tax audits. It also created a 1.8 billion dollar fund called a lawfare fund.

That fund has since been scrapped. Williams referred Trump's lawyer Alejandro Brito to the Florida Bar for filing the case improperly.

She also ordered sanctions against him. Other Justice Department lawyers already face similar discipline.

The case began after Trump filed a 10 billion dollar lawsuit against the IRS. Trump filed it after his tax returns were leaked.

An IRS contractor leaked the returns and pleaded guilty in 2023. Trump his sons Donald Jr and Eric and his company were part of the lawsuit.