Judge Rules IRS Can Share Taxpayer Info with DHS or ICE for Criminal Cases, Not Deportations
Despite this ruling, the case is still ongoing
WASHINGTON D.C. — On Monday, a federal judge denied a preliminary injunction against a taxpayer data-sharing agreement between the Internal Revenue Services (IRS), Department of Homeland Security (DHS) and Immigrant and Customs Enforcement (ICE). Despite the judge’s ruling, the case is still ongoing.
In a lawsuit filed by Public Citizen Litigation Group, Alan Morrison and Raise the Floor Alliance against Trump Administration officials to stop the IRS from disclosing tax return information to immigration enforcement authorities, a federal judge declined to put a temporary halt a data-sharing agreement that would allow ICE to obtain taxpayer address information from IRS records. Although no taxpayer information has yet been shared under the agreement, the court concluded that sharing information is likely lawful so long as ICE uses the information only in support of criminal prosecutions. The court recognized that narrow exception did not apply to civil proceedings, which include mass deportations.
Defendants in the case are Treasury Secretary Scott Bessent, the Internal Revenue Service (IRS), Acting IRS Commissioner Melanie Krauss, the Secretary of Homeland Security Kristi Noem, the Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE) and Acting ICE Director Todd Lyons. Plaintiffs in the case are Centro de Trabajadores Unidos, Immigrant Solidarity Dupage, Inclusive Action for the City and Somos Un Pueblo Unido.
“The court’s decision relies on the government’s representation that it would not use taxpayer data to support a mass deportation agenda, ” said Public Citizen Attorney Nandan Joshi, who is lead attorney on the case. “DHS and ICE must provide immigrants who have long relied on the IRS’s privacy an explanation of how it will prevent taxpayer information from being misused for civil immigration enforcement. We will be watching closely to make sure the government does not exceed the clear boundaries the court has set.”
“This ruling is not the end – we will continue to fight against Trump’s plan for an IRS data breach that violates the law, terrorizes workers and business owners, and threatens the foundation of our economy,” said Rudy Espinoza, chief executive officer, Inclusive Action for the City. “We’re not backing down and will use every tool at our disposal to protect our clients and community members, and to defend the pathways to entrepreneurship and prosperity that have made the United States an economic powerhouse.”
“This decision is a setback for immigrant families and working people across the country,” said Kevin Herrera, legal director of Raise the Floor Alliance. “It gives the green light for the IRS to be used by DHS in an unprecedented way to surveil immigrant communities —stripping away clear, long-standing protections and eroding the foundation of our public institutions. Still, we will keep pushing this case forward and fighting alongside our partners to protect all workers from government overreach. We have weathered attacks in the past, and if the government continues down this path, we will not live in fear. We will continue our efforts to sustain the dignity and safety of our communities.”
“Regardless of the judge’s ruling today, we will continue to fight for the protection of our families and the entire immigrant community, whose financial contributions cannot be denied,” Gabriela Ibañez Guzman, staff attorney at Somos Un Pueblo Unido. “For years, immigrant tax filers have followed the law and reported their income to the IRS and their state tax departments and this illegal information sharing agreement seeks to destroy decades of trust and confidentiality built over the years.
“We are disappointed with the decision by the courts,” said Ana Guajardo, executive director of Centro de Trabajadores Unidos. “Today we witnessed the abuse in power in ensuring that there are checks and balances in place. We are not done yet. CTU will not give up as it is our duty to serve and protect the most vulnerable and marginalized members of our communities. We will not continue to live in the shadows but will find ways to hold the Trump administration accountable.”
The documents from the case can be found here. For additional information on the case, or to request an interview with the litigation team or our plaintiffs, contact Katie Garcia, kgarcia@citizen.org.