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Appeals court declines to pause sanctions against Trump lawyers in IRS settlement

By Thomson Reuters Sep 29, 2026 | 11:59 AM

WASHINGTON, Sept 29 (Reuters) – A US appeals court declined on Tuesday to immediately block sanctions against lawyers for ​Donald Trump who a judge accused ‌of misusing the court system in settling a lawsuit the Republican president filed against the Internal Revenue Service.

The ruling, rejecting a request ‌made ​by Trump’s lawyers and ⁠the Justice Department, was ⁠issued by the Atlanta-based 11th US Circuit Court of Appeals.

The decision for now lets stand an order by US ​District Judge Kathleen Williams concluding that Trump improperly filed a $10 billion lawsuit ⁠to extract personal benefits ⁠from the US government, including ​a now-abandoned plan for a nearly $1.8 billion fund ​for his allies and protections from ‌tax audits.

The order referred one of Trump’s personal lawyers to Florida legal disciplinary authorities and barred any of the parties ⁠in the case — including Trump, his adult sons and his namesake company — from referring to ⁠the settlement ‌or citing any of its ⁠terms in future legal proceedings.

In ​their ‌appeal of the judge’s ruling, ​Trump’s lawyers ⁠and the Justice Department argued that it ran afoul of the US Constitution’s First Amendment protections for free speech.

(Reporting by Andrew Goudsward; Editing by Daphne Psaledakis and ​Will Dunham)