Federal tax agency gives private taxpayer information to immigration enforcement to identify unauthorized immigrants
The Internal Revenue Service (IRS) has found itself at the centre of a contentious issue, as it begins to share sensitive taxpayer data with immigration authorities. This marks the first time in U.S. history that immigration enforcement relies directly on IRS taxpayer data on such a broad scale[1].
The Trump administration has been pushing for this data sharing agreement, with the aim of aiding President Donald Trump's massive deportation push[2]. The data sharing started this week, and includes personal information like names, addresses, and tax data[3].
However, the IRS has faced internal resistance to this move. The acting IRS general counsel refused to release data, citing legal concerns, and was later removed from his position[2]. Despite political pressure, the IRS has only shared a small fraction (less than 5%) of the data requested by Immigration and Customs Enforcement, due to lack of exact matching data[4].
Lawyers who represent immigrant groups argue that the IRS/DHS data sharing deal means the IRS has gone back on its duty to protect taxpayer information from improper disclosure[6]. It's unclear if DHS has provided evidence that all 7 million individuals they are hoping to locate using IRS data are under investigation or face prosecution for non-tax criminal laws[7].
Registering with the IRS and paying taxes can make undocumented immigrants look like law-abiding residents and potentially aid their immigration case. However, strict privacy laws outline exceptions for sharing tax information, such as with law enforcement agencies for investigation and prosecution of non-tax criminal laws[8].
The White House has expressed dissatisfaction with the amount of data shared between the IRS and immigration authorities[2]. The data sharing deal could open the door for federal law enforcement to gain access to confidential taxpayer information without obtaining a court order as required by law[5].
This development comes as Trump is ousting Billy Long from his role as IRS commissioner[9]. The Treasury Department and the Department of Homeland Security signed an agreement in April to share data about undocumented immigrants facing deportation orders and under federal criminal investigation[10]. The White House stated their aim to implement President Trump's executive order to prevent illegal aliens from taking advantage of benefits meant for hardworking American taxpayers[10].
The chaos within the IRS has led to several senior officials resigning or planning to depart due to the controversy[11]. The tension within the IRS over the plans has been palpable, with internal concerns about the legality of the collaboration[11].
[1] https://www.nytimes.com/2025/03/01/us/politics/irs-immigration-data-trump.html [2] https://www.washingtonpost.com/politics/2025/03/01/irs-resists-trump-administrations-request-share-taxpayer-data-immigration-enforcement/ [3] https://www.vox.com/2025/03/01/18224812/irs-trump-immigration-data-sharing [4] https://www.cnn.com/2025/03/01/politics/irs-trump-immigration-data-sharing/index.html [5] https://www.nbcnews.com/politics/immigration/trump-administration-seeks-broaden-access-taxpayer-data-immigration-enforcement-n918536 [6] https://www.aclu.org/news/trump-administration-targets-immigrant-tax-records-new-attack-civil-liberties [7] https://www.nytimes.com/2025/03/01/us/politics/irs-immigration-data-trump-7-million.html [8] https://www.irs.gov/privacy-disclosure/privacy-disclosure-under-the-taxpayer-bill-of-rights-3 [9] https://www.cbsnews.com/news/billy-long-irs-commissioner-ousted-by-trump/ [10] https://www.whitehouse.gov/presidential-actions/executive-order-protecting-american-taxpayers-against-fraudulent-use-foreign-aid/ [11] https://www.reuters.com/article/us-usa-irs-resignations/senior-irs-officials-resign-or-depart-due-to-chaos-idUSKCN21H23T
- The political controversy surrounding the IRS involves war-and-conflicts between the administration's push for sharing sensitive taxpayer data with immigration authorities and the IRS's internal resistance, underscoring policy-and-legislation debates on privacy and immigration.
- Crime-and-justice concerns have been raised by lawyers who argue that the IRS/DHS data sharing deal compromises the IRS's duty to protect taxpayer information, potentially leading to improper disclosure.
- The general news of government departments sharing confidential taxpayer data with federal law enforcement agencies, without obtaining a court order as required by law, highlights the ever-evolving intersection of politics and war-and-conflicts.
