The Internal Revenue Service (IRS) has initiated the sharing of sensitive taxpayer information with Immigration and Customs Enforcement (ICE) this week. This action results from an agreement between the Department of the Treasury and the Department of Homeland Security (DHS), driven by the Trump administration's efforts to identify undocumented immigrants.
Under this agreement, data such as names, addresses, and tax records of individuals under final deportation orders or federal criminal investigation are being shared. Despite ICE requesting data on 1.23 million individuals suspected of unauthorized presence in the U.S., the IRS provided matches for less than 5% of these cases due to the lack of exact information.
Signed in April, this agreement has stirred internal conflict within the IRS over its legality, leading to the resignation of several senior officials. Typically, the agency maintains the confidentiality of tax information, except in specific situations allowed by law. While exceptions permit data sharing with law enforcement for non-tax-related investigations, it remains uncertain whether DHS has proven that all identified individuals are involved in such activities.
The White House defended the initiative, claiming it aims to "end fraud and abuse" and prevent undocumented immigrants from accessing benefits meant for American taxpayers. Nevertheless, immigrant advocacy groups criticize the IRS for failing to safeguard taxpayer information and warn that this could set a precedent for federal authorities to access tax data without a court order.
Lisa Gilbert, co-president of Public Citizen, described the action as "an unprecedented breach of taxpayer privacy laws." In light of the controversy, Melanie Krause, the interim IRS commissioner, resigned. Her departure was attributed to being excluded from the decision-making process and concerns over the agreement's legality, according to The Economics Times. Krause became the third IRS leader to resign in 2025.
Impact of IRS Data Sharing with ICE
What type of taxpayer information is the IRS sharing with ICE?
The IRS is sharing names, addresses, and tax records of individuals who are under final deportation orders or are subject to federal criminal investigations.
Why is the IRS sharing this information with ICE?
The sharing of information is part of an initiative by the Trump administration to identify and locate undocumented immigrants in the U.S.
What has been the response to the IRS's agreement with ICE?
The agreement has led to internal conflict within the IRS, legal concerns, and the resignation of senior officials, while immigrant advocacy groups have criticized the potential breach of privacy.