The Internal Revenue Service (IRS) recently found itself at odds with the White House regarding the use of confidential tax data to help locate suspected undocumented immigrants. This confrontation unfolded mere hours before officials from the Trump administration removed IRS Commissioner Billy Long from his position on Friday, as reported by two anonymous sources familiar with the events.
On Thursday, the Department of Homeland Security (DHS) provided the IRS with a list of 40,000 names of individuals believed to be residing in the country illegally. The DHS requested that the IRS utilize confidential taxpayer data to confirm the addresses of these individuals. This arrangement, which allowed data sharing, was initially agreed upon in April between the Treasury Department—parent agency of the IRS—and the DHS, despite opposition from the IRS's privacy lawyers.
DHS officials indicated that they might eventually seek the IRS's assistance in locating up to 7 million individuals. Current federal estimates place the number of undocumented immigrants in the United States at approximately 11 million.
On Friday, the IRS reported that it could verify fewer than 3 percent of the names submitted by immigration enforcement officials. The matches identified primarily included individuals who had provided an Individual Taxpayer Identification Number (ITIN), an IRS-specific identification often used by immigrants in lieu of a Social Security number when filing taxes. It’s noteworthy that undocumented immigrants contribute tens of billions of dollars in taxes annually, with ITINs facilitating this process.
Following this, White House officials requested further information regarding the taxpayers identified by the IRS, specifically inquiring whether any had claimed the Earned Income Tax Credit (EITC). This tax credit can significantly reduce tax liabilities for certain low-income filers. However, the IRS declined to share such information, citing the importance of taxpayer privacy rights.
Commissioner Long had previously communicated to agency executives that the IRS would not disclose confidential taxpayer information outside the terms of its agreement with the DHS. While it remains unclear whether the friction over the IRS's role in President Trump’s mass deportation strategy influenced Long's departure, the situation has stirred significant discussions.
In a statement, White House spokeswoman Abigail Jackson emphasized that the Trump administration is committed to eliminating information silos to prevent undocumented individuals from exploiting benefits intended for hardworking American taxpayers. She firmly rejected any claims that the administration was not unified in its mission.
The DHS also issued a statement underscoring that their agreement with the IRS is designed to protect sensitive taxpayer information while enabling law enforcement to effectively address criminal violations. The statement pointed out that the processes established under this agreement aim to streamline the identification of violent offenders, ensure accurate voter rolls, and assess public benefits accessed by undocumented individuals, all while safeguarding the safety and data of American citizens.
In a twist of events, Billy Long announced on Friday that President Trump intended to nominate him as the U.S. ambassador to Iceland, following a brief tenure of less than two months at the IRS. Treasury Secretary Scott Bessent has been named the interim commissioner of the IRS. Long humorously remarked on social media that he had called Trump to express interest in joining ICE (U.S. Immigration and Customs Enforcement) but jokingly suggested that Trump misinterpreted his request as one for Iceland.
Long, a former six-term Republican congressman from Missouri, had been confirmed to the IRS position in mid-June. His removal marks the sixth leadership change at the IRS since the start of the year, highlighting the ongoing turmoil within the agency amid the administration’s cost-cutting initiatives and controversial data-sharing agreements.
