The US Internal Revenue Service (IRS) is close to finalising a controversial agreement with the Department of Homeland Security (DHS) that would allow Immigration and Customs Enforcement (ICE) to use taxpayer data to locate undocumented migrants, a source familiar with the matter has revealed.
Under the proposed deal, ICE would submit the names and addresses of individuals suspected of being in the US illegally.
The IRS would then cross-reference these details with its tax records to confirm their location. The agreement, which is still under negotiation, would represent a significant shift in the IRS’s longstanding policy of safeguarding taxpayer confidentiality.
Historically, the IRS has kept taxpayer information closely guarded, with strict laws prohibiting the release of such data.
These laws are designed to protect the privacy of individuals and prevent misuse of tax information. The agency has also encouraged undocumented migrants to file taxes, a process that requires them to disclose personal details such as their addresses and income.
However, this proposed change has raised concerns among privacy experts and immigrant rights groups. Critics argue that the agreement would violate confidentiality rules and could lead to the misuse of sensitive taxpayer information for immigration enforcement.
Earlier drafts of the proposal were even more expansive, requesting broad access to data on thousands of individuals who filed taxes using individual taxpayer identification numbers (ITINs), a form commonly used by undocumented migrants.
In response to the deal, two immigrant rights groups filed a lawsuit against the Treasury Department and the IRS, arguing that federal law prohibits the IRS from sharing taxpayer data with ICE or DHS. They claim that the tax code only allows for the disclosure of such information in certain circumstances, none of which apply to immigration authorities.
Under the current draft, the IRS would not directly provide ICE with the names and addresses of migrants. Instead, DHS would request this information, and the IRS would only confirm whether the details are accurate. Requests would need to be submitted by DHS Secretary Kristi Noem or acting ICE Director Todd Lyons, and would include the taxpayer's name, address, and the date of their removal order.
The finalisation of this agreement is expected to align with President Donald Trump’s continued push for stricter immigration enforcement, a key issue in his administration.
The proposed deal, which could be in place as early as next month, has sparked fears of further erosion of privacy rights in the US, particularly among vulnerable undocumented migrants.
This move would mark a major shift in how the US government handles tax and immigration data. If approved, it would be the first time immigration authorities have relied on the IRS's confidential tax system for enforcement purposes on such a scale.
The ongoing negotiations are expected to face significant legal challenges, as privacy advocates argue that such a breach of confidentiality could have far-reaching consequences for the trust placed in government institutions.
Earlier, the United States announced it would terminate the legal status of hundreds of thousands of immigrants, giving them until April 24 to leave the country.
The move affects around 532,000 Cubans, Haitians, Nicaraguans, and Venezuelans who entered under a program launched by President Joe Biden in October 2022 and expanded in January 2023.
The immigrants will lose their legal protection 30 days after the Department of Homeland Security publishes the order in the Federal Register, which is scheduled for Tuesday. Those affected must depart the US unless they secure another immigration status.
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