In a significant development, the Internal Revenue Service (IRS) has agreed to share tax data of immigrants with Immigration and Customs Enforcement (ICE) to assist in identifying and deporting individuals residing illegally in the United States. This agreement, formalized in a memorandum of understanding signed by Treasury Secretary Scott Bessent and Department of Homeland Security Secretary Kristi Noem, was made public through federal court filings.
Signed on Monday, this new data-sharing arrangement will enable ICE to send names and addresses of undocumented immigrants to the IRS for cross-verification against tax records. Treasury officials argue that this collaboration is essential for executing President Donald Trump’s agenda to bolster border security and is part of a broader immigration crackdown that has included deportations and workplace raids.
While the Treasury claims the agreement is rooted in "longstanding authorities" granted by Congress, which are intended to safeguard the privacy of law-abiding Americans, critics argue that this IRS-DHS information-sharing pact infringes on established privacy laws. Many advocates believe that this initiative will undermine the privacy of all Americans, heightening concerns over how personal tax information can be disclosed.
Todd Lyons, the acting director of ICE, emphasized the importance of this agreement during a press conference at the Border Security Expo in Phoenix. He stated that the collaboration with Treasury and other departments is aimed specifically at major criminal cases, particularly those involving individuals who are allegedly receiving benefits unlawfully while “hiding in plain sight” under someone else’s identity.
This is not the first instance where the IRS has been called upon to assist in immigration enforcement. Earlier this year, Secretary Noem had requested IRS Criminal Investigation personnel to aid in the immigration crackdown, as reported in a letter obtained by The Associated Press. This request coincided with an increase in IRS funding, although the substantial $80 billion boost from the Democrats’ Inflation Reduction Act has since been curtailed.
A group of tax law experts from the NYU Tax Law Center voiced their concerns regarding the IRS-DHS agreement. They argued that the arrangement poses a threat to the rights of numerous Americans under existing laws designed to protect tax information from unauthorized disclosure. They questioned the feasibility of the IRS releasing information to DHS while adhering to taxpayer privacy statutes, suggesting that IRS officials who endorse such data-sharing risk legal repercussions, including criminal and civil penalties.
Despite these concerns, the memorandum asserts that both the IRS and ICE will conduct their operations in ways that respect and enhance individuals' privacy rights. It also states that their activities will comply with relevant laws, regulations, and best administrative practices.
As this agreement unfolds, its implications for immigrant communities and privacy rights will continue to be a topic of significant discussion and scrutiny.
Contributions to this report were made by Associated Press reporter Elliot Spagat from Phoenix.
