A federal court in Washington on Tuesday rejected a request to temporarily block the IRS from sharing tax data with ICE under a controversial agreement targeting undocumented immigrants.
By CTN Staff (based on reporting by the Associated Press)
A three-judge panel of the U.S. Court of Appeals for the D.C. Circuit declined to issue a preliminary injunction in favor of the immigrant rights group Centro de Trabajadores Unidos and other nonprofit organizations.
The groups were challenging an agreement signed last April by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, which authorizes ICE to submit names and addresses of undocumented immigrants to the IRS for cross-referencing against tax records.
In his decision, Judge Harry T. Edwards wrote that the petitioning groups “are unlikely to succeed on the merits of their claim,” finding that the information shared between the agencies is not covered by tax confidentiality law.
Attorney General Pam Bondi welcomed the decision on social media, describing it as “a crucial victory” for the Trump administration. “Deporting illegal aliens makes the American people safer,” she said.
Errors Raise Concerns
The agreement has raised issues. Court documents disclosed earlier this month reveal that the IRS mistakenly shared the tax data of thousands of individuals with the Department of Homeland Security.
According to a sworn declaration by Dottie Romo, the IRS’s Chief Risk and Compliance Officer, the agency was able to verify only approximately 47,000 of the 1.28 million names submitted by ICE. For fewer than 5% of those individuals, the IRS provided ICE with additional address information, potentially in violation of confidentiality rules protecting tax data.
It bears noting that millions of undocumented immigrants in the United States pay federal taxes each year using an Individual Taxpayer Identification Number (ITIN), issued by the IRS, regardless of immigration status.
According to the Congressional Budget Office, undocumented workers contribute billions of dollars annually in federal taxes, including to the Social Security and Medicare systems, from which they are ineligible to receive benefits.
Tax data confidentiality under Section 6103 of the Internal Revenue Code is considered essential to voluntary tax compliance, even among those without legal immigration status.
Immigrant rights advocates argue that using tax data for immigration enforcement purposes will discourage undocumented individuals from filing their taxes, thereby reducing federal tax revenue and complicating tax law enforcement.
The creation of the agreement led to the resignation of acting IRS Commissioner Melanie Krause last year, who stepped down hours after being informed of its terms.
The case is expected to continue in court, with the petitioning organizations indicating their intention to challenge the agreement on the merits.
This article is based on reporting by the Associated Press.
