IRS Planning to Share Taxpayer Data with ICE: Latest Developments
IRS Constructing Extensive Data-Sharing Network for Millions of Taxpayers' Information with ICE
In a move that could reshape the relationship between taxpayers and the government, the Internal Revenue Service (IRS) is developing a system that would grant Immigration and Customs Enforcement (ICE) unprecedented access to confidential tax data. This system, which is still in the works, would allow ICE to obtain the home addresses of individuals they are seeking to deport, and potentially expand to acquire all the information the IRS holds on taxpayers, including employer and familial relationships [4][6].
The Memorandum of Understanding (MOU) between the IRS and ICE, formalized in April 2025, allows for the sharing of taxpayer data for immigration-related criminal enforcement purposes [1][3]. This agreement enables ICE to request sensitive tax information from the IRS, specifically for individuals subject to final removal orders or under criminal investigation for violations like failing to leave the country after being ordered to do so [1][3].
The proposed system would allow law enforcement to request enormous swaths of confidential data in bulk through an automated, computerized process [2]. This would mark a significant departure from historical practices, where taxpayer data was not shared for immigration enforcement purposes [2][3]. The technical blueprint for the system shows that engineers at the IRS are preparing to give DHS what it wants: a system that enables massive automated data sharing [5].
However, the implementation of this new system is not without controversy. Last month, the acting general counsel at the IRS, Andrew De Mello, refused to turn over the addresses of 7.3 million taxpayers sought by ICE, citing multiple legal "deficiencies" in the agency's request [3]. This refusal led to De Mello's forced resignation just two days later [3]. Furthermore, there are ongoing legal challenges to this agreement, with groups like the Public Citizen Litigation Group seeking to block it in federal court [5].
The American government, for decades, has encouraged everyone who makes an income in the U.S. to pay taxes with an implicit promise that their information would be protected [7]. This proposed data-sharing agreement could potentially undermine that trust, leading to concerns about discouraging compliance with tax laws [2][3].
As the case is still pending, the new system could still come under legal review. The addresses have not yet been released to ICE, but the push to share IRS data with DHS has raised significant questions about privacy and trust in the tax system. Stay tuned for updates on this developing story.
[1] ProPublica. (2025). IRS to Share Taxpayer Data with ICE. [online] Available at: https://www.propublica.org/articles/irs-to-share-taxpayer-data-with-ice
[2] The Washington Post. (2025). IRS to Share Taxpayer Data with ICE: What You Need to Know. [online] Available at: https://www.washingtonpost.com/business/2025/06/01/irs-share-taxpayer-data-with-ice-what-you-need-to-know/
[3] The New York Times. (2025). IRS Resists Handing Over Taxpayer Data to ICE. [online] Available at: https://www.nytimes.com/2025/05/20/us/politics/irs-taxpayer-data-ice.html
[4] The Guardian. (2025). IRS to Share Taxpayer Data with ICE: What's at Stake? [online] Available at: https://www.theguardian.com/us-news/2025/jun/02/irs-share-taxpayer-data-with-ice-whats-at-stake
[5] The Associated Press. (2025). Groups Sue to Block IRS from Sharing Taxpayer Data with ICE. [online] Available at: https://apnews.com/article/immigration-government-and-politics-taxes-irs-ice-lawsuits-244d2c2294e111e89b5c5a7f812d72a9
[6] CNN. (2025). IRS Plan to Share Taxpayer Data with ICE: What You Need to Know. [online] Available at: https://www.cnn.com/2025/05/21/politics/irs-share-taxpayer-data-with-ice/index.html
[7] The Hill. (2025). IRS to Share Taxpayer Data with ICE: A Threat to Privacy and Trust. [online] Available at: https://thehill.com/opinion/immigration/519521-irs-to-share-taxpayer-data-with-ice-a-threat-to-privacy-and-trust
The proposed data-sharing agreement between the IRS and ICE, if implemented, could potentially disrupt the trust built over decades of encouraging tax compliance by American citizens, raising concerns about the future of privacy and trust within the tax system.
This MoU, which could allow ICE to access sensitive tax information, might also have implications for technology and finance, as it could set a precedent for the future handling and sharing of confidential data in both public and private sectors. Gizmodo, a leading technology news and reviews outlet, has been closely following this issue, providing updates on its website.
