IRS-ICE Immigrant Data Sharing Agreement Betrays Data Privacy and Taxpayers’ Trust

In an unprecedented move, the U.S. Department of Treasury and the U.S. Department of Homeland Security (DHS) recently reached an agreement allowing the IRS to share with Immigration and Customs Enforcement (ICE) taxpayer information of certain immigrants. The redacted 15-page memorandum of understanding (MOU) was exposed in a court case, Centro de Trabajadores Unidos v. Bessent, which seeks to prevent the IRS from unauthorized disclosure of taxpayer information for immigration enforcement purposes. Weaponizing government data vital to the functioning and funding of public goods and services by repurposing it for law enforcement and surveillance is an affront to a democratic society. In addition to the human rights abuses this data-sharing agreement empowers, this move threatens to erode trust in public institutions in ways that could bear consequences for decades. 

Specifically, the government justifies the MOU by citing Executive Order 14161, which was issued on January 20, 2025. The Executive Order directs the heads of several agencies, including DHS, to identify and remove individuals unlawfully present in the country. Making several leaps, the MOU states that DHS has identified “numerous” individuals who are unlawfully present and have final orders of removal, and that each of these individuals is “under criminal investigation” for violation of federal law—namely, “failure to depart” the country under 8 U.S.C. § 1253(a)(1). The MOU uses this basis for the IRS disclosing to ICE taxpayer information that is otherwise confidential under the tax code.  

In practice, this new data-sharing process works like this: ICE makes a request for an individual’s name and address, taxable periods for which the return information pertains, the federal criminal statute being investigated, and reasons why disclosure of this information is relevant to the criminal investigation. Once the IRS receives this request from ICE, the agency reviews it to determine whether it falls under an exception to the statutory authority requiring confidentiality and provides an explanation if the request cannot be processed. 

But there are two big reasons why this MOU fails to pass muster. 

First, as the NYU Tax Law Center identified:

“While the MOU references criminal investigations, DHS recently reportedly told IRS officials that ‘they would hope to use tax information to help deport as many as seven million people.’ That is far more people than the government could plausibly investigate, or who are plausibly subject to criminal immigration penalties, and suggests DHS’s actual reason for pursuing the tax data is to locate people for civil deportation, making any ‘criminal investigation’ a false pretext to get around the law.” 

Second, it’s unclear how the IRS would verify the accuracy of ICE’s requests. Recent events have demonstrated that ICE’s deportation mandate trumps all else—with ICE obfuscating, ignoring, or outright lying about how they conduct their operations and who they target. While ICE has fueled narratives about deporting “criminals” to a notorious El Salvador prison, reports have repeatedly shown that most of those deported had no criminal histories. ICE has even arrested U.S. citizens based on erroneous information and blatant racial