(Source: Washington Post)—The Internal Revenue Service is finalizing a controversial agreement that would allow Immigration and Customs Enforcement (ICE) to access confidential taxpayer data to confirm the identities and addresses of individuals suspected of being in the U.S. illegally, according to four sources familiar with the matter.
The deal, negotiated over weeks, would mark a dramatic shift in IRS policy—one that critics say betrays decades of assurances to undocumented immigrants that their tax filings would not be used against them. Under the proposed terms:
- ICE could submit names and addresses of immigrants with final deportation orders for IRS verification.
- Requests must be approved by Homeland Security Secretary Kristi Noem or acting ICE Director Todd Lyons.
- Data sharing would be limited to individuals “subject to criminal investigation” for immigration violations.
Federal law strictly protects taxpayer information, with unlawful disclosure carrying civil and criminal penalties. While limited exceptions exist for law enforcement, using tax data for immigration enforcement is virtually unprecedented.
“It’s a complete betrayal of 30 years of the government telling immigrants to file their taxes,” said a former IRS official, speaking anonymously for fear of retribution. Roughly half of the estimated 11 million undocumented immigrants in the U.S. file tax returns, often hoping it will aid future legal residency applications.
Part of Broader Deportation Push
The move aligns with President Trump’s pledge to execute the largest mass deportation in U.S. history, including:
- Daily arrest quotas of 1,200–1,500 migrants.
- Unconventional tactics, like invoking the Alien Enemies Act to detain Venezuelans in El Salvador.
- Dismantling oversight: DHS recently shuttered three internal watchdog offices that investigated migrant detention conditions and processing delays.
Last month, then-Acting IRS Commissioner Doug O’Donnell rejected a DHS request for data on 700,000 suspected undocumented immigrants, ruling it unlawful. He retired abruptly days later. His successor, Melanie Krause, and new IRS chief counsel Andrew De Mello have since met repeatedly with DHS officials to draft the agreement. Critics Warn of Chilling Effect
Advocates fear the policy will deter tax compliance and punish immigrants who followed IRS rules. The agency currently allows undocumented filers to use Individual Taxpayer Identification Numbers (ITINs), stating online that they “are subject to U.S. taxes in spite of their illegal status.”
“This turns the IRS into an immigration enforcement arm,” said a Democratic congressional aide. “It undermines trust in the tax system and targets people trying to play by the rules.” The Treasury Department and DHS declined to comment. If finalized, the agreement could take effect within weeks.
