IRS and Homeland Security sign agreement to share taxpayer data leading to deportations
- Masters Tax
- Apr 9
- 3 min read
The Internal Revenue Service (IRS) and the Department of Homeland Security (DHS) finalized an agreement on Monday to share confidential taxpayer data with federal immigration authorities, according to court documents.
As part of the agreement, the IRS agreed to provide information on undocumented immigrants who, according to DHS, are already facing deportation orders and are under federal criminal investigation, according to the documents.
The agreement was signed by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem.
Portions of the 15-page “memorandum of understanding” are redacted, making it difficult to determine exactly what the IRS will provide. However, the terms of the agreement state that Immigration and Customs Enforcement (ICE) will submit to the IRS the names and addresses of taxpayers it believes have violated federal immigration laws.
The IRS would then compare that information with existing taxpayer data and confirm its accuracy, CNN previously reported. The IRS has addresses for undocumented immigrants because many members of that community register with the agency and pay billions of dollars in taxes each year, in exchange for their data being kept confidential under most circumstances.
“The foundation of this (memorandum of understanding) is based on longstanding powers granted by Congress, which serve to protect the privacy of law-abiding Americans while expediting the prosecution of criminals,” a Treasury spokesperson said in a statement.
CNN has contacted the IRS and DHS for comment.
This is the latest push for Trump’s immigration agenda, after a favorable Supreme Court ruling on Monday authorized him to use colonial-era laws to expedite some deportations, at least for now.
Data Sharing Is Legal, Says Department of Justice
Liberal immigrant rights organizations, immigrant rights groups, and Democratic lawmakers have harshly criticized the Trump administration for attempting to use IRS data to facilitate deportations.
They claim this constitutes a breach of trust, since IRS data is supposed to be kept confidential, and that it will deter undocumented immigrants from paying taxes in the future. CNN reported last week that some experts believe the increase in tax extension requests, compared to this time last year, can be attributed in part to resistance from undocumented immigrants.
Undocumented immigrants are often urged to register with the IRS and pay their federal taxes because it makes them appear law-abiding residents and could benefit their immigration case.
The agreement between the IRS and ICE repeatedly states that any cooperation between the agencies will be in accordance with federal laws that dictate when taxpayer data can and cannot be shared.
“Each request must be in compliance” with the tax code, and ICE “will ensure the proper handling, transmission, protection, and security” of the information it receives, according to the agreement.
Immigrant rights groups filed a lawsuit last month to block the IRS from handing over data to ICE. A judge declined to issue an emergency order, but another hearing was scheduled for next week.
Justice Department lawyers stated in a document that the new agreement “is legal.”
“The Memorandum of Understanding signed by the Treasury Department and DHS reiterates the agencies’ commitment to share information only in the manner permitted by the federal tax code and includes clear safeguards to ensure compliance,” they wrote Monday.
Lawyers for the liberal organization Public Citizen, which represents immigrant groups, have argued that the agreement does not meet legal requirements and are requesting intervention from a federal judge.
“The IRS has failed in its duty to protect taxpayer information from improper disclosure,” said attorney Nandan Joshi of the agreement with ICE. If upheld, this agreement will provide a roadmap for federal law enforcement to access confidential taxpayer information without obtaining a warrant, as required by law.
The agreement also states that ICE may use artificial intelligence to analyze taxpayer data, but must notify the IRS Protection Agency to ensure compliance.
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