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4w ago

IRS Nears Controversial Data-Sharing Deal with ICE for Immigration Enforcement

The proposed agreement has sparked privacy concerns, economic warnings, and protests as it moves closer to finalization under the Trump administration.

Illustration: Aïda Amer/Axios
President Donald Trump meets with U.S. ambassadors in the cabinet room of the White House in Washington, D.C., on March 25, 2025.
A sign for the Internal Revenue Service (IRS) is seen outside its building on February 13, 2025 in Washington, DC. Members of Elon Musk's Department of Government Efficiency (DOGE) arrived at the Internal Revenue Service to begin examining the agency's operations.
People use IRS Direct File at the Internal Revenue Service Building on April 05, 2024 in Washington, DC.

Overview

  • The IRS is reportedly close to finalizing a deal with ICE to share personal tax data of undocumented immigrants for immigration enforcement purposes.
  • Critics, including Democratic lawmakers and legal experts, warn the agreement could violate federal privacy laws and constitutional protections.
  • Undocumented immigrants, who contributed $96.7 billion in taxes in 2022, may be deterred from filing taxes, potentially costing billions in lost revenue over time.
  • Protests have erupted in cities like San Jose, where immigrant communities and local leaders fear economic harm and reduced public services due to the deal's chilling effect.
  • The Trump administration's push aligns with its broader immigration enforcement agenda, targeting individuals with deportation orders and criminal records.