Judge refuses to block IRS from sharing tax data to identify people illegally in U.S.

Published: Tuesday, May 13, 2025 at 5:18 am

Judge Allows IRS to Share Tax Data with ICE for Immigration Enforcement

A federal judge has sided with the Trump administration, allowing the Internal Revenue Service (IRS) to share tax data with Immigration and Customs Enforcement (ICE) to identify and potentially deport individuals residing in the U.S. illegally. U.S. District Judge Dabney Friedrich, appointed by President Trump, denied a preliminary injunction sought by nonprofit groups who argued that undocumented immigrants paying taxes deserve the same privacy protections as citizens and legal residents.

The ruling follows the resignation of a former acting IRS commissioner, Melanie Krause, over the agreement. The agreement allows ICE to submit names and addresses of suspected undocumented immigrants to the IRS for verification against tax records. While the judge acknowledged the plaintiffs' disappointment, the case is ongoing. The plaintiffs are closely monitoring the situation to ensure the government adheres to legal limitations.

The Treasury Department maintains the agreement supports President Trump's border security agenda and broader immigration enforcement efforts. The acting ICE director claims the data sharing is limited to major criminal cases. However, advocates express concerns that the agreement violates privacy laws and undermines the privacy of all Americans.

Judge Friedrich's decision hinges on the interpretation of the Internal Revenue Code, which allows the IRS to share some taxpayer information with other agencies for criminal enforcement purposes under specific conditions. The judge clarified that the IRS can share information it obtains independently, but not information solely provided by the taxpayer, such as tax returns. However, a taxpayer's identity, including name and address, is not considered protected tax return information.

BNN's Perspective: This ruling highlights the ongoing tension between national security and individual privacy rights. While the government argues this data sharing is crucial for enforcing immigration laws and combating crime, the potential for misuse and the erosion of trust in government institutions are valid concerns. Striking a balance between these competing interests is essential, and ongoing oversight is crucial to ensure the agreement is implemented responsibly and within legal boundaries.

Keywords: IRS, ICE, tax data, immigration, deportation, undocumented immigrants, privacy, Trump administration, Dabney Friedrich, Internal Revenue Code, criminal enforcement, border security, taxpayer information, legal, illegal, enforcement, data sharing, privacy rights, government, lawsuit

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