October 2026 brings new court orders on the Trump IRS lawsuit and new agency records on taxes. The latest filings keep sanctions in place for Trump lawyers, limit IRS sharing of taxpayer addresses, and launch automatic Trump Accounts alongside a draft 2026 Form 1040. Trump taxes here means three things: President Trump's own tax dispute with the IRS, IRS handling of other taxpayers' data, and tax rules that affect families. Each has a separate court or agency record from September 2026.
Table of Contents
- What happened to the $10 billion IRS lawsuit?
- Are the sanctions against Trump's lawyers still in effect?
- Did the IRS share taxpayer addresses with immigration officers?
- What are automatic Trump Accounts starting Oct. 1?
- Will your 2026 return ask about citizenship and work authorization?
What happened to the $10 billion IRS lawsuit?
On Jan. 29, 2026, President Trump, Donald Jr., Eric Trump and the Trump Organization sued the IRS and Treasury for at least $10 billion in Miami federal court. They alleged failure to stop contractor Charles Littlejohn leaking tax returns to media, according to Reuters' January report on the filing.
A May 19, 2026 Justice Department settlement addendum signed by Acting Attorney General Todd Blanche declared the IRS forever barred from auditing Trump, family members and businesses for returns filed before that date. On July 13, 2026, U.S. District Judge Kathleen Williams voided that settlement, ruling the suit was brought for improper purpose with no true adverseness, barred its use as a settlement, and sanctioned lawyers Brito and Epstein, according to Reuters' July ruling coverage.
Are the sanctions against Trump's lawyers still in effect?
Yes. On Sept. 29, 2026, a three-judge 11th Circuit panel declined to pause those sanctions.
The panel found attorneys Alejandro Brito and Daniel Epstein unlikely to show Judge Williams lacked basis for discipline. The order does not decide the full appeal. It leaves the discipline in place while the appeal continues.
Did the IRS share taxpayer addresses with immigration officers?
On Sept. 8, 2026, the unanimous D.C. Circuit upheld an injunction blocking an IRS procedure that had disclosed about 47,289 taxpayer addresses to ICE.
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The court ruled it likely violated Section 6103 confidentiality protections, according to Reuters' September decision report. Section 6103 is the federal law that keeps tax return information private. The ruling applies to that address-sharing procedure, not to all cooperation between tax and immigration agencies.
What are automatic Trump Accounts starting Oct. 1?
Trump Accounts are tax-deferred accounts for eligible children. On Sept. 30, 2026, Treasury and IRS issued temporary regulations T.D. 10056 to automatically enroll up to 60 million eligible children using government records, according to the Journal of Accountancy's account of the enrollment change.
The regulations took effect Sept. 30 with enrollment Oct. 1. Automatic enrollment means many families do not need to file a separate election to open the account.
Will your 2026 return ask about citizenship and work authorization?
IRS draft 2026 Form 1040 posted in September 2026 adds a Yes/No question asking if filer and joint spouse are U.S. citizens, nationals or aliens authorized to work.
It would apply to tax-year 2026 returns filed in 2027 if finalized. The draft carries practical limits for readers now:.
- The form is marked DRAFT NOT FOR FILING.
- IRS testing notice Sept. 9, 2026 says scenarios are subject to change.
- Modernized e-File testing opens Oct. 13, 2026, so taxpayers should not act yet.
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