President Donald Trump recently resolved a longstanding tax audit through an agreement with the Justice and Treasury Departments. This agreement is part of an unusual lawsuit filed by Trump and his sons against the Internal Revenue Service.

The resolution likely ended a tax audit tied to a $72.9 million refund Trump claimed and received starting around 2010. The refund matched the total federal income tax he paid, plus interest, from 2005 to 2008. These years marked Trump’s peak earnings as a TV celebrity on ‘The Apprentice.’

Trump’s refund claim was based on substantial business losses totaling $1.4 billion from 2008 and 2009. These losses were ones tax laws had previously prohibited him from using. The New York Times analyzed his 2020 tax returns and highlighted this issue.

Eric Trump, Trump’s middle son, acknowledged in 2023 that the audit was still active. During Trump’s first presidential term, the audit was placed on hold, as shown by records obtained by The Times. It remains unclear if the audit was on hold during his current term or if it concluded recently.

The audit and potential increased interest and penalties could have resulted in liabilities exceeding $100 million for Trump. Throughout, Trump has maintained that his tax filings were appropriate and that he did not engage in wrongdoing.