NEW YORK (AP) — Remember Donald Trump’s response in the 2016 presidential debate, when Hillary Clinton blasted him for paying virtually no federal taxes?
“That makes me smart,” Trump said.
By that logic, Trump is looking smarter than ever now.
On Tuesday, the Internal Revenue Service agreed to drop all pending probes of Trump over whether he's paid his fair share of taxes, to settle a lawsuit brought by the president over a leak of his tax returns. That could include, assuming it was ongoing, a long-standing audit into a technique Trump reportedly used to avoid paying taxes years ago that could have hit him with an estimated $100 million bill if the IRS found wrongdoing.
Trump has repeatedly denied he did anything wrong and has blasted the IRS investigation as politically motivated, without providing proof.
Details of IRS audits are not public and the merits of each side's arguments are impossible to tell. But the way the president's case against his own government's IRS was resolved is highly unusual, experts say.
Trump sued the IRS, a federal agency within his administration, putting him in the unusual position of challenging an agency overseen by the executive branch he leads — a rare move, experts say, and possibly unprecedented. Then that agency decided, in another unusual move, to grant him immunity.
Under the settlement to resolve Trump’s $10 billion lawsuit over the 2018 leak of his tax returns to The New York Times, the U.S. is “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump Organization's current tax filings, according to a one-page document released Tuesday. That was quietly added to an original settlement establishing a $1.8 billion fund to compensate people whom Trump thinks were improperly investigated by the government.
Tax experts say this grant of immunity is shocking in the breadth of protection it offers the president and could undermine confidence in the fairness of the tax system.
“This is an unprecedented remedy,” said former IRS Commissioner Daniel Werfel, noting that Trump should be treated like every other American. “People expect the same tax rules and enforcement framework to apply to everybody.”
The IRS probe revolved around whether Trump doubled-dipped in cutting his taxes, according to a 2024 report by The New York Times and ProPublica — specifically whether he used the same losses from his Chicago skyscraper to cut them twice in future filings, a big no-no.
The report said Trump could owe more than $100 million, including penalties, if he were to lose the audit battle.
Now the Justice Department has moved to “wipe his slate clean,” said tax expert Brandon DeBot, calling that an “extraordinary action” in the message it sends to the country.
“The president and his affiliates might not pay the taxes they should,” said DeBot, policy director at New York University’s Tax Law Center. “This is giving the president and his affiliates completely different set of rules than everyday taxpayers.”
The immunity is especially useful to Trump. His company includes hundreds of separate businesses, making his tax returns complicated. He also has a reputation for aggressively cutting his taxes, which some experts find suspicious — and at least in one case deemed now illegal.
After his Atlantic City casinos collapsed under heavy debt in the mid-1990s, for instance, Trump claimed about $1 billion in losses to cut his tax bill, even though lenders had forgiven hundreds of millions of dollars he owed. Trump argued the debt was never technically forgiven because he had exchanged equity in the bankrupt casino business for it — a tax maneuver Congress later barred as an abusive tax loophole.
Through that technique and other tax shelters and deductions, Trump was able pay just $750 in federal taxes in 2016 and 2017, and zero in 2020, according to a congressional investigation after his first term.
Despite hinting that he may now release his tax returns, Trump has previously refused to do so, saying he can't while undergoing an IRS audit — but there is no law barring him from doing that. In fact, presidents for decades have done so voluntarily and all have had their returns audited as a matter of IRS policy.
That policy began in the late 1970s in a post-Watergate crackdown on presidential abuses after Richard Nixon was found to have claimed dubious deductions — including a donation of his personal papers — that led to big underpayments. One year while president, he paid only hundreds of dollars.
When asked about his tax maneuvers, Nixon famously retorted, “I am not a crook.” He later agreed to the IRS findings, and paid hundreds of thousands of dollars in back taxes.
Trump's settlement with the IRS refers only to existing audits, not future examinations, so the president and his family are not off the hook for any alleged abuses in future tax returns.
Parts of the settlement are being challenged in court.
The compensation fund is being attacked by police officers who helped defend the U.S. Capitol from Trump’s supporters on Jan. 6, 2021. They have sued to block anyone — including the rioters — from receiving payouts.
Some law experts expect the tax immunity will be challenged in court, too.
“This is the president trying to play every role in the system, acting as plaintiff, defendant, and his own judge and jury to extract extraordinary windfalls,” said New York University's DeBot, adding that giving broad immunity “stretches beyond what DOJ actually has authority to do.”
Hussein reported from Washington.
President Donald Trump speaks as he tours Ballroom construction around the outside the White House, Tuesday, May 19, 2026, in Washington. (AP Photo/Jacquelyn Martin)
FILE - The Trump Taj Mahal Casino Resort in Atlantic City, N.J., on Jan. 30, 2009. (AP Photo/Mel Evans, File)
FILE - President Donald Trump arrives at Leesburg Executive Airport on Marine One in Leesburg, Va., Thursday, April 24, 2025, en route to Trump National Golf Club Washington DC in Sterling, Va. (AP Photo/Jacquelyn Martin, File)
Kyle Busch grew to expect — even appreciate — the boos.
The driver nicknamed Wild Thing, Outlaw, Rowdy and KFB over his 26-year NASCAR career was more comfortable than anyone might imagine with a checkered flag in one hand and fans jeering all around. He leaned into the villain role as the wins mounted — and boy did they — and even started encouraging his haters, trying to get the howling to a fever pitch before delivering his signature bow.
It was Busch at his best.
And it’s the way he should be remembered.
The two-time Cup Series champion, who won more races than anyone across NASCAR’s three national series, died Thursday at age 41. Tributes poured in, with many echoing the sentiment that racing had lost one of its fiercest competitors.
Busch was that — and so much more.
He was arguably the greatest driver of his generation, displaying unrivaled success. He notched a combined 234 wins — 63 in the top-tier Cup Series and another 171 in NASCAR’s two feeder series, O’Reilly (102) and Trucks (69).
He was a devoted husband, a side that became public when he and wife Samantha chronicled their struggle to become parents and later founded the Bundle of Joy Fund, which is dedicated to advancing access to in vitro fertilization (IVF) care and providing support so others don’t have to navigate infertility alone. The fund has raised more than $2 million and has celebrated the birth of 111 babies.
He was a loving father, who tirelessly tried to teach his 11-year-old son, Brexton, everything he could about racing and even sold his successful Truck Series team to help raise money to support his son's budding career.
He was even one of NASCAR’s most popular — some would say polarizing — drivers thanks to his longtime M&M's sponsorship. Kids flocked to Busch and his colorful No. 18 Toyota at Joe Gibbs Racing.
Older fans might not have been as supportive, and it was evident every time Busch took the checkered flag and responded to booing with a mocking bow.
“This is a devastating loss and one that is hard for the NASCAR community to process. Kyle was a fierce competitor who demanded the very best from himself each time he put on the helmet,” four-time Cup Series champion Jeff Gordon said. “As teammates, I saw firsthand the passion and intensity he brought to the sport every single day.
“He was a champion and a prolific racer who made a tremendous impact on NASCAR and was a lifelong advocate for all forms of motor sports. But beyond the track, he loved his family deeply and was incredibly proud of Samantha, Brexton and Lennix.”
Busch had become sort of a sympathetic figure in recent years, a series champion in the worst slump of his career and a surefire Hall of Famer who never got to celebrate a Daytona 500 victory. Both skids bothered him, no doubt, the first more than the second.
Busch’s last Cup Series victory came at World Wide Technology Raceway in Illinois in 2023. Busch won three of the first 15 races that season, his first with Richard Childress Racing. RCR had built the Next Gen prototype, so the team had an early advantage with the new car.
But once everyone else caught up, Busch and RCR lagged behind. He was winless in his final 105 starts and changed crew chiefs twice this season while searching for a winning combination. The most trying part: Feeling like he was letting Brexton down week after week.
“It’s no secret, right? And seeing my son and his passion that he has; he really is probably my biggest cheerleader,” Busch said at Daytona International Speedway in February. “And he wants to see me run well. He wants to see me win races. He wants to celebrate in victory lane like he sees other drivers’ kids being able to do.
“So there’s nothing more that drives me every single weekend than seeing him see me and be proud of me.”
Busch died after being hospitalized with a severe illness. It came three days before he was to compete in the Coca-Cola 600 at Charlotte Motor Speedway.
Busch was testing in the Chevrolet racing simulator in Concord, North Carolina, on Wednesday when he became unresponsive and was transported to a hospital in Charlotte, several people familiar with the situation told The Associated Press on condition of anonymity because details have not been disclosed by Busch’s team or family.
Busch’s death came 11 days after he radioed his crew near the end of a Cup Series race at Watkins Glen and asked a doctor to give him a “shot” when he finished the race. Busch had been struggling with a sinus cold exacerbated by the intense G-forces and elevation changes at the New York road course, broadcasters said.
Busch finished that race eighth. He competed at Dover last weekend and — maybe fittingly — won his last Trucks Series start for Spire. He then finished 17th in the NASCAR All-Star race, his final event.
Busch stormed into the Cup Series in 2005 and won Rookie of the Year honors. He was at Hendrick Motorsports at the time, a job he was fired from to make room for Dale Earnhardt Jr.
His career, though, was as much defined by post-race fights, feuds with other drivers and outlandish behavior as all the trips to victory lane.
Nonetheless, Busch won championships in 2015 and 2019 for Joe Gibbs Racing. His first title came after he missed part of the season while recovering from two broken legs. He was let go from JGR in 2022 after losing his M&M’s sponsor and with the team looking to make room for Ty Gibbs, the grandson of team owner Joe Gibbs.
Busch landed at RCR, where he ranked a disappointing 24th in Cup Series points after 12 races. But an indelible image was his final victory. And he celebrated that Truck Series win with two bows amid a scattering of boos.
“You take whatever you can get, man,” Busch said. “You never know when the last one is going to be, so cherish them all — trust me.”
AP auto racing: https://apnews.com/hub/auto-racing
FILE - Kyle Busch is introduced during the NASCAR All-Star auto race at Dover Motor Speedway, Sunday, May 17, 2026, in Dover, Del. (AP Photo/Derik Hamilton, File, File)
FILE - Kyle Busch drinks champagne after winning the Nationwide series championship and the NASCAR Ford 300 Nationwide series auto race at the Homestead-Miami Speedway in Homestead, Fla., Saturday, Nov. 21, 2009. (AP Photo/Terry Renna, File)
FILE - Kyle Busch celebrates his win in the NASCAR Sprint Cup Series' Autism Speaks 400 auto race, Sunday, May 16, 2010, in Dover, Del. (AP Photo/Nick Wass, File)
FILE - Kyle Busch celebrates after winning the NASCAR Cup Series auto race at Charlotte Motor Speedway in Charlotte, N.C., Sunday, May 27, 2018. (AP Photo/Chuck Burton, File)
FILE - Kyle Busch waits in his car before practice for Sunday's NASCAR Sprint Cup series Coca-Cola 600 auto race at Charlotte Motor Speedway in Concord, N.C., Saturday, May 25, 2013. (AP Photo/Mike McCarn, File, File)
FILE - Kyle Busch waits for the start of a NASCAR Xfinity Series auto race Saturday, June 19, 2021, in Lebanon, Tenn. (AP Photo/Mark Humphrey, File)
