IRS and DHS Finalize Tax Data Sharing Agreement for Immigration Enforcement

The newly signed memorandum allows ICE to access taxpayer data to locate undocumented immigrants facing deportation, raising legal and privacy concerns.

The IRS and DHS have signed a memorandum of understanding enabling ICE to cross-check taxpayer data to verify the identities and addresses of undocumented immigrants with final deportation orders.
This agreement, effective immediately, represents a major shift in longstanding IRS policies that have historically protected taxpayer confidentiality, including for undocumented immigrants filing taxes under ITINs.
The Trump administration has emphasized the agreement as a cornerstone of its immigration enforcement agenda, aiming to expedite deportations and improve inter-agency cooperation.
Privacy advocates, IRS officials, and immigrant rights groups have criticized the move, warning it could deter undocumented immigrants from filing taxes and undermine federal trust in the IRS.
Legal challenges have already been filed by advocacy groups, arguing that the agreement violates taxpayer privacy laws, with further court hearings scheduled in the coming weeks.