IRS consents to provide tax information to immigration officials
Authorities assert that the contentious proposal adheres to stringent taxpayer confidentiality regulations.
TroibNews 
The IRS has consented to share confidential taxpayer information to assist the Trump administration's efforts to combat undocumented immigration, as revealed in a recent court filing.
Officials from the IRS and the Department of Homeland Security have spent weeks negotiating a deal allowing immigration authorities to request information from the tax agency on undocumented immigrants, including their home addresses.
Taxpayer information is highly protected within the federal government, and the disclosure of these negotiations raised significant concerns at the IRS.
On Monday, the Treasury Department, which oversees the IRS, announced that it had finalized the agreement in a filing that requested a federal court to dismiss a lawsuit from immigrant rights groups aimed at halting the sharing of tax data.
While federal law tightly regulates the confidentiality of taxpayer information, there are certain exceptions. The IRS is prepared to share information with DHS and Immigration and Customs Enforcement under a provision that permits the agency to support criminal investigations, as noted in the court filing.
“The Memorandum of Understanding signed by the Department of the Treasury and DHS reiterates the agencies’ commitment to sharing information only in the way that" tax law “permits and includes clear guardrails to ensure compliance…," a Justice Department attorney stated in the filing.
So far, DHS has not requested any confidential information from the IRS under the agreement, nor has the tax agency released any data.
Nonetheless, this arrangement represents a significant shift for the IRS, which has for years encouraged undocumented workers to file their taxes while assuring them that their confidential information would be protected.
Taxpayer advocates and former IRS officials have expressed concern that the extensive sharing of confidential information, as outlined in this agreement, signifies a dramatic change in how the agency has historically utilized the criminal investigation exception.
Furthermore, the request for assistance from DHS has resulted in considerable turmoil within the tax agency, compounded by initiatives from Elon Musk’s Department of Government Efficiency, which has also sought access to sensitive databases and led to the dismissal of numerous employees.
Amid these discussions on data sharing, an acting commissioner, Doug O’Donnell, retired abruptly in late February, while the Trump administration demoted the acting chief counsel, William Paul, in mid-March.
Current acting commissioner Melanie Krause has shown a greater willingness to engage with DOGE and immigration authorities, according to insights from former government officials.
Olivia Brown for TROIB News
Officials from the IRS and the Department of Homeland Security have spent weeks negotiating a deal allowing immigration authorities to request information from the tax agency on undocumented immigrants, including their home addresses.
Taxpayer information is highly protected within the federal government, and the disclosure of these negotiations raised significant concerns at the IRS.
On Monday, the Treasury Department, which oversees the IRS, announced that it had finalized the agreement in a filing that requested a federal court to dismiss a lawsuit from immigrant rights groups aimed at halting the sharing of tax data.
While federal law tightly regulates the confidentiality of taxpayer information, there are certain exceptions. The IRS is prepared to share information with DHS and Immigration and Customs Enforcement under a provision that permits the agency to support criminal investigations, as noted in the court filing.
“The Memorandum of Understanding signed by the Department of the Treasury and DHS reiterates the agencies’ commitment to sharing information only in the way that" tax law “permits and includes clear guardrails to ensure compliance…," a Justice Department attorney stated in the filing.
So far, DHS has not requested any confidential information from the IRS under the agreement, nor has the tax agency released any data.
Nonetheless, this arrangement represents a significant shift for the IRS, which has for years encouraged undocumented workers to file their taxes while assuring them that their confidential information would be protected.
Taxpayer advocates and former IRS officials have expressed concern that the extensive sharing of confidential information, as outlined in this agreement, signifies a dramatic change in how the agency has historically utilized the criminal investigation exception.
Furthermore, the request for assistance from DHS has resulted in considerable turmoil within the tax agency, compounded by initiatives from Elon Musk’s Department of Government Efficiency, which has also sought access to sensitive databases and led to the dismissal of numerous employees.
Amid these discussions on data sharing, an acting commissioner, Doug O’Donnell, retired abruptly in late February, while the Trump administration demoted the acting chief counsel, William Paul, in mid-March.
Current acting commissioner Melanie Krause has shown a greater willingness to engage with DOGE and immigration authorities, according to insights from former government officials.
Olivia Brown for TROIB News
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