The U.S. Internal Revenue Service (IRS) is reportedly nearing an agreement to allow Immigration and Customs Enforcement (ICE) officials to access tax data to support deportation efforts. This proposed data-sharing arrangement has been under negotiation for several weeks and could mark a significant shift in the use of taxpayer information.
Under the proposed agreement, ICE would provide the names and addresses of undocumented immigrants to the IRS. The IRS would then cross-reference these names with its confidential taxpayer databases, a move that raises concerns about potential abuse of power and the erosion of privacy rights. Historically, tax information has been closely guarded, and such data-sharing with immigration enforcement would represent a significant departure from established practices.
The IRS website states that undocumented immigrants “are subject to U.S. taxes despite their illegal status,” and because most are unable to obtain Social Security numbers, the agency allows them to file with Individual Taxpayer Identification Numbers (ITINs). The agency also subjects them to the same reporting and withholding obligations as it does to U.S. citizens who receive the same kind of income. More than half of the roughly 11 million undocumented immigrants in the U.S. file income tax returns to document their payments to the government.
While the IRS mandates that taxpayer information is protected, Section 6103 of the agency’s disclosure laws outlines that “under court order, return information may be shared with law enforcement agencies for investigation and prosecution of non-tax criminal laws.” However, sources familiar with the matter have indicated that it would be rare for these privacy law exceptions to be used for cooperation with immigration enforcement, suggesting that this is outside of standard procedure.
The potential shift in taxpayer data use aligns with the more aggressive immigration policies pursued by the Trump administration. During his campaign, President Trump promised to deport millions of undocumented individuals in the U.S., and reports of this new deal shed light on how he plans to achieve this goal. Since taking office, he has ended legal pathways for immigrants to enter and remain in the U.S.
The Department of Homeland Security (DHS) announced on March 21, 2025, that it would revoke the temporary legal status of more than 530,000 Cubans, Haitians, Nicaraguans, and Venezuelans. ICE raids and enforcement operations have become more common in major cities across the U.S., such as Chicago and New York, which have high immigrant populations.
Last weekend, the Trump administration decided to deport 137 Venezuelan immigrants despite a judge’s order blocking the move. On Sunday, Border Czar Tom Homan stated in an interview with ABC News that the administration would not defy court orders stemming from legal challenges over its invocation of the wartime Alien Enemies Act to deport the alleged Venezuelan gang members. “I don’t care what the judges think as far as this case,” Homan told ABC, referring to a federal judge’s efforts to determine whether the administration had already ignored an earlier order to temporarily halt deportations.
Attorney General Pam Bondi also addressed the deportations in an interview with Fox News on Sunday, likening the fight against the alleged gang members to “modern-day warfare.”
The proposed data-sharing agreement between the IRS and ICE has sparked significant debate. Critics argue that it could lead to the misuse of sensitive taxpayer information and further erode trust in the confidentiality of tax data. Supporters contend that it is a necessary step to enforce immigration laws more effectively. As negotiations continue, the implications of this potential agreement remain a topic of intense discussion and concern.
