The IRS is close to finalizing an agreement that would allow Immigration and Customs Enforcement (ICE) to access confidential taxpayer data—including names and addresses—to identify and locate individuals suspected of being in the U.S. illegally, marking a significant shift in taxpayer privacy policies. Under the proposed deal, ICE could submit details of immigrants with final removal orders for IRS verification, though requests would require high-level approval and specific identifying information. Critics, including IRS officials, argue this misuse of privacy law exceptions betrays decades of assurances that undocumented immigrants could file taxes safely. The move aligns with President Trump’s aggressive deportation campaign, which has expanded enforcement tactics and dismantled internal oversight agencies. If approved, the agreement would reverse previous IRS refusals to share taxpayer data and could deter undocumented workers from filing taxes, despite many doing so in hopes of future legal residency. The decision follows leadership changes at the IRS, with new officials favoring collaboration with Homeland Security.
