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IRS Data-Sharing Deal with DHS Alarms Undocumented Immigrants

The newly implemented agreement raises fears of deportation and legal challenges as longstanding trust in IRS confidentiality erodes.

The Internal Revenue Service building in Washington, DC.
UNDISCLOSED LOCATION, CONNECTICUT - MARCH 29: An immigrant receives help in preparing her U.S. income tax forms on March 29, 2025 at an undisclosed location, Connecticut. A non-profit immigrant center is holding free sessions where tax advisors provide assistance to immigrants in preparing their tax documents. Many immigrants, including legal green card holders, have expressed extreme anxiety as the Trump administration enacts more stringent immigration policies, including mass deportations of undocumented people living in the United States.  (Photo by John Moore/Getty Images)
A view of the Internal Revenue Service building in Washington on February 16, 2025.

Overview

  • The IRS is now sharing taxpayer data with DHS under a formal agreement, with details of the arrangement partially redacted.
  • Undocumented immigrants who previously trusted IRS confidentiality are reconsidering filing taxes due to fears of deportation and family separation.
  • Advocates and community leaders report widespread confusion and feelings of betrayal among immigrant communities over the policy.
  • Two immigrant rights groups have filed a lawsuit claiming the agreement violates federal law by improperly disclosing taxpayer information.
  • Yale research estimates the policy could lead to a $300 billion federal revenue loss over the next decade as tax compliance diminishes.