IRS to Share Tax Data With ICE Agents

IRS to Share Tax Data With ICE Agents \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ The IRS has agreed to share tax data with ICE to identify and deport undocumented immigrants, per a new federal agreement. Signed by Treasury and Homeland Security officials, the move has sparked major privacy concerns. Legal experts warn it may violate longstanding taxpayer confidentiality laws.

Quick Looks:

• Treasury and DHS sign agreement to share tax data for immigration enforcement.
• ICE can submit immigrant names to IRS for cross-verification.
• Agreement supports Trump’s crackdown on undocumented immigration.
• Advocates, legal experts say it threatens privacy rights.
• NYU Tax Law Center warns IRS may be breaking the law.
• Agreement claims compliance with laws and privacy protections.
• IRS agents already tapped earlier in 2025 to assist ICE.
• DHS says effort targets major criminal cases, not minor infractions.

Deep Look

IRS to Share Immigrant Tax Data With ICE Under New Trump-Era Agreement

In a controversial move that is drawing sharp legal and ethical scrutiny, the Internal Revenue Service has agreed to a data-sharing pact with Immigration and Customs Enforcement (ICE), enabling the agency to access taxpayer data for immigration enforcement purposes. The agreement, revealed in court documents and signed Monday by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, represents a significant expansion of federal data-sharing powers in support of President Donald Trump’s aggressive immigration agenda.

The deal allows ICE to submit the names and addresses of individuals suspected of being in the United States illegally to the IRS for verification against tax records. If the information matches, it could help ICE locate and initiate deportation proceedings against those individuals.

The document, described as a “memorandum of understanding” (MOU), marks the first formalized partnership of its kind between the two agencies. Treasury officials argue the arrangement is backed by long-established Congressional authorities and is focused on improving coordination to pursue serious criminals. But immigration advocates and tax law experts are raising red flags over the unprecedented nature of the agreement — and its potential to erode taxpayer privacy for millions of Americans.

A Treasury spokesperson, speaking anonymously, defended the move. “This agreement uses longstanding authorities granted by Congress, which serve to protect the privacy of law-abiding Americans while streamlining the ability to pursue criminals,” they said. But outside legal experts were quick to challenge that assertion.

According to the NYU Tax Law Center, the agreement “threatens to violate the rights that many more Americans have under longstanding laws that protect their tax information from wrongful disclosure or dissemination.” In a statement released Monday, the center’s attorneys emphasized the legal risks: “IRS officials who sign off on data sharing under these circumstances risk breaking the law, which could result in criminal and civil sanctions.”

Privacy advocates note that federal tax data is among the most closely guarded information under U.S. law, protected by Section 6103 of the Internal Revenue Code. Any unauthorized disclosure — even to another federal agency — can trigger legal penalties. Critics argue this agreement could set a dangerous precedent that undermines the trust between taxpayers and the IRS.

Immigration authorities, however, say the deal is critical to locating individuals who have used fraudulent identities or are exploiting public services unlawfully. Todd Lyons, acting director of ICE, told reporters at the Border Security Expo in Phoenix that the initiative is meant to target “major criminal cases” and help identify people who are “hiding in plain sight.”

The cooperation between the IRS and ICE is not entirely new. Earlier this year, DHS requested assistance from the IRS to provide criminal investigation agents to aid in immigration operations — a request documented in a February letter from Secretary Noem to Secretary Bessent. The request cited the increased resources the IRS had recently received under the Inflation Reduction Act, though much of that funding has since been rescinded by Congress.

The Trump administration has intensified its immigration crackdown in recent months, conducting workplace raids, reinstating deportation tools like the controversial Alien Enemies Act of 1798, and fast-tracking deportations for migrants, including Venezuelans. The IRS-ICE MOU now adds a powerful data weapon to that enforcement arsenal.

Despite the backlash, the memo itself includes language aimed at soothing concerns. It states that both agencies “will perform their duties in a manner that recognizes and enhances individuals’ right of privacy and will ensure their activities are consistent with laws, regulations, and good administrative practices.” However, critics argue that such assurances are vague and do not address the legal questions surrounding the agreement’s compatibility with taxpayer confidentiality laws.

Kristi Noem, who has taken a more assertive role in national immigration policy since joining DHS, defended the deal by emphasizing the need for “whole-of-government coordination” in rooting out immigration violations that involve identity fraud or financial crime.

But for legal scholars and privacy watchdogs, the broader concern is whether the deal opens the door to mass data sharing beyond criminal investigations — particularly if political will shifts toward more aggressive enforcement tactics.

“The potential for misuse is enormous,” said one privacy expert from the Electronic Frontier Foundation. “If tax data becomes fair game for immigration enforcement, what’s next? Health records? Bank statements? This crosses a line that shouldn’t be crossed.”

As the agreement takes effect, civil liberties organizations are expected to challenge the legality of the move in court. At stake is not only the future of immigration enforcement but also the sanctity of one of America’s core privacy protections — the confidentiality of tax information.

With the lines between tax enforcement and immigration control now officially blurred, the Biden-appointed judiciary — as well as the public — may soon have to weigh in on whether the IRS’s cooperation with ICE goes too far.

More on US News