The Internal Revenue Service (IRS) began sharing confidential taxpayer information with the Immigration and Customs Enforcement (ICE) this week, as part of a agreement between the Department of the Treasury and the Department of Homeland Security (DHS) initiated by the Trump administration to locate undocumented immigrants.
The data includes names, addresses, and tax records of individuals who, according to the DHS, are facing final deportation orders or are under federal criminal investigation.
According to sources cited by CNN, ICE requested information on 1.23 million individuals "suspected" of being in the country without authorization, but the IRS only provided matches in less than 5% of the cases, as it did not find exact data for the majority.
The agreement, signed in April, has generated tension within the IRS due to doubts about its legality and has led to the departure of senior officials.
The exchange of data breaks with the agency's usual practice, which maintains the confidentiality of tax information except in specific cases allowed by law.
Although these exceptions allow for the sharing of data with law enforcement for investigations of non-tax offenses, it is unclear whether the DHS has proven that all identified individuals are involved in such crimes.
The White House defended the measure, stating that it aims to "put an end to fraud and abuse" and to prevent undocumented immigrants from accessing benefits intended for U.S. taxpayers.
However, attorneys for immigrant groups accuse the IRS of failing to protect taxpayer information and warn that this precedent could pave the way for federal authorities to access tax data without a court order.
Lisa Gilbert, co-president of Public Citizen, described the action as "an unprecedented violation of taxpayers' privacy laws."
In response to the controversy, Melanie Krause, the interim IRS commissioner, submitted her resignation, citing her exclusion from the decision-making process and concerns about the legality of the agreement, according to The Economics Times. Krause became the third IRS leader to depart in 2025.
Frequently Asked Questions about Data Sharing between the IRS and ICE
What kind of information is the IRS sharing with ICE?
The IRS is sharing names, addresses, and tax records of taxpayers with ICE, specifically of those under final deportation orders or criminal investigations. This exchange aims to assist in locating undocumented immigrants in the U.S.
What is the legality of the agreement between the IRS and the DHS?
The federal judge Dabney Friedrich approved the agreement, considering that it does not violate the Internal Revenue Code. However, legal experts and civil rights advocates question its compliance with taxpayer privacy laws, sparking a debate over its legality.
What are the implications for undocumented immigrants who fulfill their tax obligations?
The exchange of data could deter undocumented immigrants from fulfilling their tax obligations, as they fear that their information may be used for their deportation, which would undermine trust in government institutions.
Why did interim IRS Commissioner Melanie Krause resign?
Melanie Krause resigned due to her exclusion from the decision-making process and concerns about the legality of the agreement between the IRS and ICE. Her departure reflects the internal tension and controversy generated by this agreement.
What has been the reaction of immigrant rights organizations to this agreement?
Immigrant rights organizations have strongly criticized the agreement, arguing that it violates taxpayer privacy laws and could pave the way for indiscriminate access to tax data without a court order.
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