In a huge move that’s causing alarm among privacy and immigration advocates, the IRS has agreed to share tax information about undocumented immigrants with ICE for deportations.
See the tweet below!
This decision opens up questions about taxpayer privacy and government overreach.
The IRS’s decision to share taxpayer information with ICE stems from a memorandum of understanding (MOU) between the IRS and DHS.
The agreement allows ICE to request specific taxpayer details for investigations into undocumented immigrants with final removal orders.
This move, signed by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, has some advocating for increased caution.
This shift in policy has prompted legal challenges. Immigrants’ rights groups filed a lawsuit arguing that tax records should remain confidential according to the Internal Revenue Code.
Lisa Gilbert, Public Citizen co-president, criticized the move as an unprecedented breach of taxpayer privacy laws.
Even some IRS veterans have expressed concern over the impact of this new precedent on tax collections.
Despite these concerns, government officials argue this information sharing is crucial for ensuring public safety and identifying potential threats.
They claim that the MOU is structured to protect taxpayer data while being consistent with IRS privacy laws, specifically Internal Revenue Code Section 6103.
This section contains a criminal exemption allowing IRS data sharing for law enforcement purposes.
“The Internal Revenue Service and the Immigration and Customs Enforcement have entered into a memorandum of understanding to establish a clear and secure process to support law enforcement’s efforts to combat illegal immigration,” declared a spokesperson of the Treasury Department, cited by The Guardian.
The MOU specifies using IRS data strictly for judicial or administrative proceedings, providing guardrails against misuse.
However, as of April 7, no tax information had yet been requested by homeland security officials.
Breaking News: The IRS agreed to share information with ICE to help locate people for deportation, court records show. This is a fundamental change in the IRS, which had gained the trust of migrants and encouraged them to file their taxes. https://t.co/RYQ520YeBE
— The New York Times (@nytimes) April 8, 2025
Many worry that this collaboration could deter undocumented immigrants from filing taxes, potentially impacting federal revenue.
Illegal immigrants contribute significantly to U.S. tax revenue. In 2023, they paid nearly $90 billion in taxes, including $56 billion in federal taxes.
Moreover, the American Immigration Council estimates they comprised around 5% of the U.S. workforce that year.
The potential deterrent effect of this agreement could therefore have far-reaching economic consequences.
This controversial policy highlights a complex issue at the intersection of privacy, immigration, and national security.
As the courts weigh in and details emerge, the future of IRS-ICE information sharing remains uncertain.
Nonetheless, the Trump administration’s push for closer cooperation between these agencies underscores an ongoing debate about balancing security with personal privacy.
