Federal Court Permits IRS to Share Tax Data with ICE
In a significant ruling on Monday, a federal judge determined that the Internal Revenue Service (IRS) is permitted to share tax information with Immigration and Customs Enforcement (ICE). This decision enables ICE to use the data to locate and potentially deport individuals residing in the U.S. without legal authorization.
Details of the Ruling
U.S. District Judge Dabney Friedrich, appointed by former President Donald Trump, denied a request for a preliminary injunction submitted by several nonprofit organizations. These groups contended that undocumented immigrants who contribute to taxes deserve the same privacy protections afforded to U.S. citizens and lawfully present immigrants.
Judge Friedrich’s ruling follows the recent resignation of former acting IRS commissioner Melanie Krause, which came after controversies surrounding the information-sharing agreement. This arrangement allows ICE access to the names and addresses of individuals identified as undocumented immigrants for cross-referencing with IRS tax records.
Reactions to the Decision
Alan Butler Morrison, an attorney for the nonprofit plaintiffs, expressed disappointment regarding the court’s decision. He asserted that while they are exploring their options for appeal, the case is ongoing. Morrison emphasized that it is crucial to ensure that both the Department of Homeland Security (DHS) and the IRS adhere strictly to legal limitations in data requests.
Implications of Data Sharing Agreement
Proponents of the agreement, including the Treasury Department, argue that it supports the Trump administration’s broader immigration objectives. These efforts are characterized by heightened enforcement actions, including deportations and workplace raids—a strategy that has drawn both support and criticism.
Morrison highlighted concerns that the IRS-DHS agreement could violate privacy laws, arguing that it undermines the privacy of all individuals in the U.S.
Legal Framework and Conditions
Judge Friedrich noted that the current IRS practices involving taxpayer data have not fundamentally altered as a result of this agreement. Federal law permits the IRS to share certain taxpayer information with other agencies to aid in criminal investigations, provided specific criteria are met. According to the ruling:
- The investigating agency must have prior knowledge of the individual’s name and address.
- The agency must submit this information along with the relevant law permitting the data request.
- It must also explain how disclosing the information would assist in the investigation.
The judge clarified that while the IRS can disclose information obtained through audits, it cannot disclose data that is strictly provided by the taxpayer, such as tax returns. Importantly, the identity of taxpayers, including names and addresses, remains accessible for certain investigative purposes.
In summary, this ruling underscores ongoing tensions regarding privacy and immigration enforcement in the U.S., raising significant questions about the intersection of tax data confidentiality and immigration policy.