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IRS Nears Controversial Agreement to Share Taxpayer Data with ICE

The proposed deal would enable ICE to use IRS data for immigration enforcement, raising concerns over privacy and the erosion of trust in the tax system.

© Tasos Katopodis/Getty Images
A U.S. flag flutters outside the U.S. Internal Revenue Service (IRS) building after it was reported the IRS will lay off about 6,700 employees, a restructuring that could strain the tax-collecting agency's resources during the critical tax-filing season, in Washington, D.C., February 20, 2025.
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Overview

  • The IRS and ICE are close to finalizing a data-sharing agreement to support immigration enforcement efforts under the Trump administration.
  • The agreement would allow ICE to cross-reference names and addresses of suspected undocumented immigrants with IRS taxpayer databases.
  • If approved, this would be the first large-scale use of the tax system for immigration enforcement, marking a major policy shift.
  • Career IRS officials and privacy advocates have expressed alarm over potential misuse of taxpayer data and violations of confidentiality assurances.
  • The shift in IRS policy follows recent leadership changes that align the agency more closely with the administration's deportation priorities.