On September 29, 2026, a three-judge panel from the 11th U.S. Circuit Court of Appeals unanimously rejected a request from attorneys Alejandro Brito and Daniel Epstein to pause sanctions related to their handling of Trump's $10 billion lawsuit against the IRS. The panel determined that the attorneys did not provide sufficient evidence to suggest they would succeed in their appeal against U.S.
District Court Judge Kathleen Williams' findings of bad faith. The sanctions stemmed from Judge Williams' conclusion that the lawsuit was improperly filed, as Trump, being the head of the executive branch, controlled the IRS, and thus the parties were not truly adversarial.
The ruling also noted that Williams has yet to make a final decision on whether to reopen the case or address the issue of attorneys' fees. The implications of this ruling are significant, as it not only upholds the sanctions but also reflects the court's disapproval of the attorneys' actions in the case, which was settled out of court in May.
The settlement had previously led to controversy regarding a proposed $1.8 billion fund by the Justice Department, which was intended to compensate defendants involved in the January 6 Capitol riot but was quickly abandoned. Trump's legal team continues to assert that the IRS mishandled sensitive information regarding Trump and his family, framing the sanctions as politically motivated.
This ongoing legal battle highlights the complexities of Trump's interactions with federal agencies and the potential ramifications for his legal representatives