IRS Agrees to Share Tax Information with ICE
On April 7, 2025, the IRS and Immigration and Customs Enforcement (ICE) signed a memorandum of understanding (MOU) permitting ICE to request taxpayer information for immigration enforcement purposes. Under the agreement, ICE may seek data on individuals with deportation orders or under federal criminal investigation, invoking Internal Revenue Code §6103(i)(2). This marks a stark departure from long-standing IRS confidentiality procedures, especially concerning undocumented workers who file with Individual Taxpayer Identification Numbers (ITINs).
Critics, including former IRS officials, argue the MOU undermines taxpayer privacy and could deter millions of undocumented workers from filing tax returns, possibly reducing federal revenue. The agreement has triggered legal challenges and internal resignations, with the IRS’s acting commissioner, Melanie Krause, stepping down in protest.
If you want to know more about the implications of the IRS sharing taxpayer data with ICE, please call our team at (410) 497-5947 or fill out our contact form.
Glen Frost’s Takeaways:
This new agreement between the IRS and ICE raises some eyebrows regarding taxpayer privacy. For years, the IRS has been a vault for your financial information, and this feels like a large crack in that foundation, especially for a vulnerable population.
- ICE can now request your tax information if they have a deportation order against you or if you’re under federal criminal investigation. They’re using a specific part of the tax code (§6103(i)(2)) to do this.
- The big worry here is that undocumented workers, many of whom file taxes using ITINs, might now be too scared to file at all. If they don’t file, that hurts everyone – the individuals would miss out on potential refunds or credits, and the government would lose revenue.
- It’s a controversial move. We’re seeing legal challenges and even resignations within the IRS because people are deeply concerned about this shift in how taxpayer information is being used.
Ultimately, this MOU could have a chilling effect, potentially deterring people from complying with tax laws out of fear of immigration enforcement. There’s a delicate balance between law enforcement and the fundamental principle of taxpayer confidentiality.
