Federal judge upholds IRS-DHS agreement to share migrant data with ICE

By lauraharris // 2025-05-19

Copy

A federal judge upheld an agreement allowing the IRS to share taxpayer information (names and addresses) with ICE to aid in locating illegal immigrants targeted for deportation, rejecting claims that the policy violated tax privacy laws.
Judge Dabney Friedrich denied a lawsuit by immigrant-rights groups, ruling that the IRS-DHS memorandum of understanding (MOU) complies with federal tax code provisions permitting disclosure for criminal investigations.
The judge clarified that data-sharing applies only to criminal investigations, not civil deportation proceedings, countering arguments that the policy would broadly harm immigrant communities.
Treasury and DHS officials defended the agreement, emphasizing taxpayer privacy safeguards while asserting ICE's need for updated location data to enforce deportation orders or pursue criminal violators.
The ruling drew praise from Trump-era officials, who framed it as a corrective to Biden's immigration policies, while critics argue it undermines trust in tax systems for undocumented filers.

A federal judge has ruled that the Internal Revenue Service (IRS), in partnership with the Department of Homeland Security (DHS), can legally share the taxpayer information of illegal immigrants with U.S. Immigration and Customs Enforcement (ICE) to locate illegals targeted for deportation. On Monday, May 12, U.S. District Judge Dabney Friedrich ruled against an injunction sought by immigrant-rights group Centro de Trabajadores Unidos, which had sued Treasury Secretary Scott Bessent over a memorandum of understanding (MOU) between the two agencies. The agreement, finalized in April, permits ICE to submit names and addresses of illegal immigrants to the IRS, which can then cross-check tax records to provide updated location data to immigration authorities. (Related: IRS fires 6,000 employees as Trump Administration targets government waste.) "To summarize, the IRS must disclose limited taxpayer identity information (e.g., the taxpayer's name and address) to assist another agency in criminal investigations and proceedings if the agency has satisfied the statutory prerequisites in its written request," Friedrich wrote in her 16-page ruling. She dismissed arguments from four immigration advocacy groups that claimed the agreement was unlawful and arbitrary, stating that their challenge "does not comport with the text of the statute." "The provision plainly exempts taxpayer address information from the general prohibition on sharing taxpayer return information and requires that information to be disclosed upon a valid written request," Friedrich wrote. "As long as the agency has a name and an address for a taxpayer, it can request address and name information from the IRS to assist the requesting agency in a criminal investigation or proceeding and the IRS must comply." Moreover, Friedrich noted that the MOU explicitly limits information sharing to criminal investigations. "At its core, this case presents a narrow legal issue: Does the Memorandum of Understanding between the IRS and DHS violate the Internal Revenue Code? It does not," Friedrich wrote. "The plain language of (the federal tax code) mandates disclosure under the specific circumstances and preconditions outlined in the (IRS-ICE agreement)."

Federal officials defend the agreement, praise Friedrich's decision

In line with the ruling, a senior Treasury Department official has defended the agreement. The official argued that while taxpayer privacy is a priority, federal law requires the IRS to assist law enforcement in criminal cases. The MOU includes safeguards to protect sensitive taxpayer data while allowing ICE to pursue individuals with outstanding deportation orders or criminal violations. Meanwhile, Tricia McLaughlin, the DHS assistant secretary for public affairs, praised the decision and called it a "victory for the American people and for common sense." "Under President Trump's leadership, the government is finally doing what it should have all along – sharing information across the federal government to solve problems," McLaughlin said shortly after the ruling on Monday. "Biden not only allowed millions of illegal aliens to flood into our country, but he lost them through incompetence and improper processing." Head over to BigGovernment.news for more stories like this. Watch Judicial Watch President Tom Fitton as he talks about why the probe on Trump's tax returns amounts to unprecedented abuse by the IRS.

This video is from the NewsClips channel on Brighteon.com.

NATURAL NEWS

Federal officials defend the agreement, praise Friedrich's decision

More related stories: