Internal Revenue Service Broke Federal Law

IRS Illegally Shared Confidential Taxpayer Information With ICE

A federal judge in Washington ruled on Thursday that the Internal Revenue Service (IRS) broke federal law approximately 42,695 times by illegally sharing confidential tax information with Immigration and Customs Enforcement (ICE).  

The Court’s Finding

U.S. District Judge Colleen Kollar-Kotelly determined that the IRS had breached Internal Revenue Code Section 6103 and it is one of the nation’s strictest privacy statutes. The violation occurred when a controversial data sharing agreement signed in April 2025 between Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem had occurred.   

The ruling was done by a court filing from Dottie Romo and the IRS’s chief risk control officer. Her declaration revealed that even though ICE requested data on 1.28 million people, the Internal Revenue Service had disclosed the last known addresses of over 42,000 taxpayers without ensuring the requests met legal standards. Judge Kollar Kotelly stated that many of ICE’s requests were patently deficient and yet the IRS handed over the data.  

A Breach of Public Trust

The Internal Revenue Service had maintained its distance between tax collections and immigration enforcement to encourage all residents regardless of their status to pay taxes. This ruling intensifies fear from immigrant advocacy groups. Advocacy groups state that the agency’s new policy has turned tax returns into a tool for deportation.   

“This confirms what Advocacy Groups have been saying all along” said Nina Olson, founder of the Center for Taxpayer Rights which sued in order to stop the disclosure. The Internal Revenue Service has unlawfully violated the law’s core protection policy.   

Current Status

While a federal appeal in court has recently declined to the issue as full injunction against the program, Judge Kollar-Kotelly’s specification found 42,695 illegal acts significantly strengthens the legal challenges against the administration. Currently there are two separate court orders remaining in place and blocking ICE from acting upon any IRS data already in its possession.

Sources:

APNEWS: The IRS broke the law by disclosing confidential information to ICE 42,695 times, judge says

APNEWS: Court says the IRS can continue to share immigrants’ taxpayer data with ICE

Featured Image Courtesy of Alpha Photo Flickr Page – Creative Commons License

Inset Image Courtesy of Matt Luce Flickr Page – Creative Commons License