In a decision that marks a significant shift in tax privacy policy in the United States, federal judge Dabney Friedrich authorized the Internal Revenue Service (IRS) to share tax information of immigrants with the Immigration and Customs Enforcement (ICE).
The resolution, issued on Monday, May 12, denies a request from nonprofit organizations that sought to prevent this collaboration between government agencies, reported the agency AP.
Judge Friedrich, appointed by President Donald Trump, concluded that the agreement between the IRS and the Department of Homeland Security (DHS) does not violate the Internal Revenue Code.
According to current legislation, the IRS can disclose certain tax data to other government agencies if the information is relevant to criminal investigations and specific criteria are met, such as the identification of the taxpayer by name and the legal justification for the request.
The agreement, formalized through a Memorandum of Understanding signed by the Secretary of the Treasury, Scott Bessent, and the Secretary of Homeland Security, Kristi Noem, allows ICE to request tax information from the IRS about individuals facing final deportation orders and who are under criminal investigation.
Although the specific details of the type of information shared have not been fully disclosed, it is known that ICE must provide the names and addresses of the individuals in question, and the IRS will verify this data against its records.
The measure has raised concerns among immigrant rights advocates and legal experts, who argue that it could deter undocumented individuals from fulfilling their tax obligations and undermine trust in government institutions.
Lisa Gilbert, co-president of Public Citizen, described the action as "an unprecedented violation of taxpayer privacy laws."
In response to the controversy, Melanie Krause, acting commissioner of the IRS, submitted her resignation, citing her exclusion from the decision-making process and concerns regarding the legality of the agreement, according to The Economics Times. Krause became the third IRS leader to leave in 2025.
The Department of the Treasury defends the measure as part of the Trump administration's efforts to strengthen border security and combat illegal immigration.
However, organizations such as the Centro de Trabajadores Unidos and Immigrant Solidarity DuPage have filed lawsuits to block the implementation of the agreement, arguing that it violates the confidentiality protections established in the Internal Revenue Code.
The decision of Judge Friedrich could have significant implications for immigrant communities in the United States, especially those that contribute to the tax system using Individual Taxpayer Identification Numbers (ITIN).
According to estimates from the American Immigration Council, undocumented immigrants paid nearly $90 billion in taxes in 2023.
Frequently Asked Questions about the Collaboration between the IRS and ICE for Sharing Tax Information
What does the agreement between the IRS and ICE allow?
The agreement allows the Immigration and Customs Enforcement (ICE) to request tax information from the IRS about individuals facing final deportation orders and who are under criminal investigation. This collaboration is part of a strategy to identify and deport undocumented immigrants in the United States.
What concerns has this measure raised?
The measure has raised concerns among immigrant rights advocates and legal experts, who argue that it could deter undocumented individuals from fulfilling their tax obligations and undermine trust in government institutions. It is considered a violation of taxpayers' privacy laws and could expose IRS officials to criminal or civil penalties.
What does the use of tax information by ICE imply for immigrants?
The use of tax information by ICE can have significant implications for immigrant communities in the United States, particularly affecting those who contribute to the tax system using Individual Taxpayer Identification Numbers (ITIN). This could complicate their immigration status and create uncertainty regarding their privacy and rights.
What legal actions are being taken against this measure?
Organizations such as the United Workers Center and Immigrant Solidarity DuPage have filed legal complaints to block the implementation of the agreement, arguing that it violates the confidentiality protections established in the Internal Revenue Code. These actions aim to protect the privacy of taxpayers and prevent rights violations.
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