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Wednesday, August 05, 2026

Capital One says it closed Trump Organization’s accounts after anti-money laundering probe

 

Fighting Autocracy: Lessons from Abroad

The July 13 Episode of Strict Scrutiny with host Professor Kate Shaw (UPenn) interviewing Princeton Professor Kim Lane Scheppele offers productive insights about the challenges facing democratic leaders who manage to take power away from autocrats. Don’t miss it. Also in that episode, Professor. Shaw directs us to this article from the NYTimes by Mattathias Schwartz exploring President Trump’s nomination of Emil Joseph Bove III to serve on the U.S. Court of Appeals for the Thrid Circuit.


Mother Jones: The IRS Is Imploding

In Mother Jones, Stephanie Mencimer writes about the current state of the IRS in “The IRS Is Imploding.” From the piece:

These aren’t just anecdotal one-offs. A June report to Congress from the Taxpayer Advocate Service, an independent agency within the IRS, found that live humans answered 20 percent fewer calls during this year’s tax filing season and that hold times jumped anywhere from 81 to 161 percent, depending on the line called. Only 17 percent of the calls handled by the “voicebot” system were completed. Most callers got frustrated and either asked to be transferred to a live person or hung up.

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The nonprofit Center for Taxpayer Rights this year also conducted its own research on how bad the IRS call responsiveness has gotten. The group discovered that the government’s own measurements showed that wait times increased more than 70 percent in 2026, even though the agency received 50 percent fewer calls to its main 1040 help line than during the previous year. CTR testers then called various IRS phone numbers and found that nearly 40 percent of the calls were disconnected—mostly by the IRS.

 

Capital One says it closed Trump Organization’s accounts after anti-money laundering probe

Reuters – “Capital One Financial hit back on Friday against a lawsuit over its decision to close ‌the Trump Organization’s bank accounts[link to court document added by beSpacific] years ago, stating that it did so after a review by anti-money laundering experts. 
The disclosure marks the first time a bank has formally tied money laundering concerns to U.S. President Donald Trump’s family business. Capital One is seeking to dismiss ​the case by casting doubt on claims of illegally debanking — or denying services on religious or political grounds — ​the Trump Organization. The Trump Organization and Capital One did not immediately respond to requests for ⁠comment. Capital One has never accused the Trump Organization of illegal money laundering. 
But Friday’s filing argues that “documents and Plaintiffs’ own ​allegations make clear that Capital One closed Plaintiffs’ accounts for anti-money laundering (“AML”) reasons. The closures were the result of months ​of analysis and a careful review by Capital One’s AML team in accordance with bank policies and regulatory guidance.” Capital One gave notice of its plans to close more than 300 Trump-affiliated bank accounts in March 2021. 
The Trump Organization and Eric Trump, the president’s son, filed ​a lawsuit in March 2025 in a Florida federal court, alleging the accounts were closed because of Capital One’s “woke” ​beliefs and its desire to benefit from the political mood after the January 6, 2021 riot at the U.S. Capitol…”




D.C. Circuit Affirms Sentence for Trump Tax Return Leaker

Mary Katherine Browne, “Appeals Court Affirms Sentence for Trump Tax Return Leaker” (Tax Notes, July 20, 2026):

The D.C. Circuit rejected a former IRS contractor’s bid to overturn his five-year sentence for leaking the tax returns of President Trump and thousands of wealthy taxpayers, finding no evidence of a predetermined sentence or improper outside pressure.

In a July 17 opinion in United States v. Littlejohn, Circuit Judge Justin R. Walker affirmed Charles E. Littlejohn’s sentence for the unauthorized disclosure of tax return information belonging to a sitting president and 7,600 other wealthy taxpayers.

“We find no merit in Littlejohn’s arguments that the district court (1) predetermined his sentence, (2) relied on clearly erroneous factual findings, (3) impermissibly considered a letter sent by some members of Congress, and (4) did not provide an adequate explanation for the court’s upward variance,” Walker said.