Judge Places Hold on IRS Data Sharing With ICE

Federal Court Blocks Nationwide Deportation Initiative

A federal judge issued an injunction on Friday that stops the Department of Homeland Security’s Immigration and Customs Enforcement (ICE) from using tax‑return information supplied by the Internal Revenue Service (IRS) in a sweeping deportation effort.

Reason for the Injunction

The judge ruled that the IRS had illegally disseminated the personal data of numerous non‑citizen taxpayers without proper legal authority or adequate safeguards. In the written order, the court noted that the agency’s actions violated both the Privacy Act and the statutory limits placed on the IRS’s data‑sharing capabilities.

Background of the Program

In early 2024, ICE launched a program that requested the IRS to provide tax‑return records for individuals identified as “high‑risk” for immigration enforcement. The agency argued that the data would help locate undocumented immigrants who had filed U.S. tax returns, thereby strengthening removal proceedings.

Critics, including civil‑rights groups and immigration advocates, warned that the program could lead to “chilling effects” on tax compliance among immigrant communities and expose vulnerable families to unnecessary scrutiny.

Judge’s Findings

After reviewing the plaintiffs’ claims, the judge concluded that:

• The IRS lacked a specific statutory mandate to share tax information for immigration enforcement.
• The data requests were overly broad, encompassing thousands of taxpayers who were not subject to any criminal investigation.
• The sharing arrangement failed to provide adequate notice or opportunity for affected individuals to contest the disclosure.

According to the ruling, “The government’s interest in immigration enforcement does not override the fundamental privacy protections guaranteed to all taxpayers, regardless of immigration status.”

Reactions

Immigration advocates hailed the decision as a victory for privacy rights. “This injunction sends a clear message that agencies cannot weaponize tax data against vulnerable communities,” said Maria Alvarez, director of the nonprofit Rights for All.

Government officials expressed disappointment. A spokesperson for the Department of Justice stated, “We will review the court’s findings and determine the appropriate next steps to ensure that law‑enforcement objectives can be pursued within the bounds of the law.”

Potential Impact

The ruling temporarily halts the current data‑sharing arrangement, forcing ICE to rely on other investigative tools while the case proceeds. Legal experts predict that the decision could set a precedent for how federal agencies access and use tax‑return information in future immigration or criminal investigations.

Next Steps

The plaintiffs have asked the court to issue a permanent injunction, while the government has filed a motion to appeal the decision. A hearing on the appeal is scheduled for early next month.