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IRS Nears Deal to Share Taxpayer Information with ICE for Deportation Efforts

The proposed agreement would allow ICE to verify names and addresses of undocumented immigrants ordered to leave the U.S., raising privacy and legal concerns.

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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 is close to finalizing a data-sharing agreement with ICE, enabling the verification of taxpayer information for individuals already ordered to leave the country.
  • This marks a significant shift in IRS policy, which has historically assured undocumented immigrants that their tax information would remain confidential.
  • The agreement focuses on verifying names and addresses submitted by ICE, rather than providing broad access to taxpayer databases.
  • Privacy advocates and immigrant rights groups have filed lawsuits, arguing the deal may violate federal laws protecting taxpayer confidentiality.
  • A federal judge recently declined to block the agreement, while negotiations continue despite public and institutional resistance.