Appeals Court Allows IRS-ICE Tax Data Sharing
A D.C. appeals panel declined a preliminary injunction, allowing the IRS to continue cross-checking ICE-submitted names against tax records under an April 2025 memorandum of understanding.
ABC NewsCourt says IRS can continue to share immigrants' taxpayer data with ICE
Associated PressCourt says the IRS can continue to share immigrants' taxpayer data with ICE
The Post MillennialIRS can share data with ICE for immigration enforcement: US appeals court
NewsmaxCourt Rejects Bid to Block IRS-ICE Data Sharing
The FederalistD.C. Circuit Greenlights IRS Policy Aimed At Boosting Deportations
Overview
A three-judge D.C. Circuit panel on Tuesday declined to issue a preliminary injunction blocking the IRS from sharing taxpayer data with Immigration and Customs Enforcement.
An April 2025 memorandum of understanding allows ICE to submit names and addresses to the IRS for cross-verification against tax records, which plaintiffs say could aid deportation efforts.
Attorney General Pam Bondi called the decision a "crucial victory" on social media, and a representative for Centro de Trabajadores Unidos did not immediately respond to a request for comment.
IRS Chief Risk and Control Officer Dottie Romo stated the IRS verified roughly 47,000 of 1.28 million names ICE requested and provided additional address information for less than 5% of those individuals.
The appeal follows a May 2025 lower court ruling that rejected an earlier injunction bid, and plaintiffs Centro de Trabajadores Unidos and other nonprofits continue to pursue the lawsuit in federal court.
Analysis
Center-leaning sources present the ruling factually and evenly, noting the court's refusal to block the IRS-ICE data share while including government justification, plaintiffs' challenge and concrete privacy concerns (resignation, erroneous disclosures). They avoid loaded editorializing, balancing official quotes and reporting findings that show both policy rationale and potential harms.
FAQ
The agreement is based on a memorandum of understanding signed in April 2025, which claims to rely on exceptions to IRS confidentiality rules for criminal investigations involving persons subject to final removal orders. However, a federal judge ruled in November 2025 that the data-sharing policy is likely unlawful and violates the IRS's own privacy and confidentiality policies under Section 6103 of the Tax Code, which strictly prohibits the IRS from sharing taxpayer information with other federal agencies except for narrow criminal investigation exceptions.
The IRS disclosed approximately 47,289 records out of 1.28 million that ICE requested in August 2025. However, the IRS later discovered it may have supplied last known addresses to ICE in cases where ICE-provided address information was incomplete or insufficiently populated, including instances referencing specific locations like jails or prisons without street addresses. The Treasury Department notified DHS of the issue on January 23, 2026, and requested remediation steps.
On November 21, 2025, a federal judge in the case Center for Taxpayer Rights et al. v. Internal Revenue Service et al. blocked the IRS from sharing taxpayer records with ICE and DHS, ordering a temporary suspension on data disclosures. The judge found that the data-sharing agreement is likely unlawful. Additionally, a separate federal judge subsequently paused ICE from using taxpayer data in enforcement operations.
Immigrant communities have reported heightened fear and confusion around interacting with the IRS. Anecdotal reporting indicates this fear has resulted in a decline in tax filings among undocumented immigrants, which undermines voluntary compliance with the tax system. This is particularly significant because undocumented immigrants contribute substantially to federal taxes—an estimated $89.8 billion in taxes in 2023—despite not being eligible for many benefits they fund.
Under the memorandum of understanding, ICE can request the taxpayer's name, address, and tax data for individuals facing final orders of removal or under federal criminal investigation. ICE must submit a written request that includes the taxpayer's name, address, tax year in question, the criminal statute being investigated, and an explanation of why the information is relevant to the investigation.
