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Business Standard
13-05-2025
- Business
- Business Standard
Judge won't block IRS from sharing tax data to identify, deport US migrants
In a win for the Trump administration, US District Judge Dabney Friedrich denied a preliminary injunction in a lawsuit filed by nonprofit groups AP Columbia A federal judge on Monday refused to block the Internal Revenue Service from sharing immigrants' tax data with Immigration and Customs Enforcement for the purpose of identifying and deporting people illegally in the US. In a win for the Trump administration, US District Judge Dabney Friedrich denied a preliminary injunction in a lawsuit filed by nonprofit groups. They argued that undocumented immigrants who pay taxes are entitled to the same privacy protections as US citizens and immigrants who are legally in the country. Friedrich, who was appointed by President Donald Trump, had previously refused to grant a temporary order in the case. The decision comes less than a month after former acting IRS commissioner Melanie Krause resigned over the deal allowing ICE to submit names and addresses of immigrants inside the US illegally to the IRS for cross-verification against tax records. The plaintiffs are disappointed in the Court's denial of our preliminary injunction, but the case is far from over. We are considering our options, Alan Butler Morrison, the attorney representing the nonprofit groups, wrote in an email. He noted that the judge's ruling made it clear that the Department of Homeland Security and the IRS can't venture beyond the strict limitations spelled out in the case. So far, DHS has not made formal requests for taxpayer data and plaintiffs will be keeping a close watch to be sure that the defendants carry out their promises to follow the law and not use the exception for unlawful purposes, Morrison said. The IRS has been in upheaval over Trump administration decisions to share taxpayer data. A previous acting commissioner announced his retirement earlier amid a furor over Elon Musk's Department of Government Efficiency gaining access to IRS taxpayer data. The Treasury Department says the agreement with ICE will help carry out President Donald Trump's agenda to secure US borders and is part of his larger nationwide immigration crackdown, which has resulted in deportations, workplace raids and the use of an 18th century wartime law to deport Venezuelan migrants. The acting ICE director has said working with Treasury and other departments is strictly for the major criminal cases. Advocates, however, say the IRS-DHS information-sharing agreement violates privacy laws and diminishes the privacy of all Americans. In her ruling, Friedrich said the agreement doesn't violate the Internal Revenue Code, so the IRS hasn't substantially changed the way it handles taxpayer information. Instead, the Trump administration has decided to use already existing statutorily authorized tools" to help with criminal investigations, Friedrich wrote. Federal law allows the IRS to release some taxpayer information to other agencies if the information may assist in criminal enforcement proceedings, and the requesting agency meets certain criteria, the judge said. Still, that doesn't mean that all the information the IRS holds can be turned over, Friedrich said. First, the investigating agency has to already have the name and address of the person whose information is being sought. Then the agency has to provide that information to the IRS, along with the time span for which the information relates, the law that allows the information to be released and the reason why any IRS-disclosed information would be relevant to the investigation. In other words, the IRS can disclose information it obtains itself (such as through audits), but not information it obtains exclusively from the taxpayer (such as a tax return filed by the taxpayer), Friedrich wrote. She noted the law contains a significant exception a taxpayer's identity, including the individual's name, address or taxpayer identifying number, isn't considered part of the protected tax return information.
Epoch Times
13-05-2025
- Politics
- Epoch Times
Judge Refuses to Block IRS From Sharing Tax Data on Illegal Immigrants Facing Criminal Investigation
A federal judge on Monday refused to block the Internal Revenue Service (IRS) from sharing the data of taxpayers facing criminal investigation with immigration authorities, rejecting arguments from advocacy groups that the move would violate federal privacy protections and chill tax compliance by illegal immigrants. In a 16-page The judge noted that the terms of the IRS-DHS memorandum of understanding do not violate any data-sharing requirements set out in federal law, including that the DHS submit written requests for the data, identify specific individuals under criminal investigation, and provide justification for the request. Then, only after verifying compliance with Section 6103 of the tax code, may the IRS share limited identity information, such as names and addresses. '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 26 U.S.C. § 6103(i)(2) mandates disclosure under the specific circumstances and preconditions outlined in the Memorandum. For this reason, the plaintiffs have failed to show they are likely to succeed on their claims.' The ruling marks a legal win for the Trump administration, which has pushed to integrate federal tax and immigration enforcement as part of a broader crackdown on illegal immigration. The plaintiffs—Centro de Trabajadores Unidos (CTU) and Immigrant Solidarity DuPage (ISD)—filed suit in March to Related Stories 5/12/2025 5/12/2025 'Release of such information would subject individual members of CTU and ISD to privacy harm and harm in the form of the arrest, detention, or other deprivations of liberty associated with the Trump Administration's stated intention to engage in mass actions against immigrants in the United States,' the groups wrote in their complaint. However, the court found that the IRS-DHS agreement complies with the law because, while Section 6103 of the tax code generally prohibits disclosure of confidential tax return information such as names and addresses, it includes exceptions for criminal enforcement. The judge noted in her ruling that the memorandum of understanding does not authorize disclosures for civil immigration enforcement, such as deportations not tied to a criminal charge. Even though the plaintiffs expressed concern that DHS might use the information for broader deportation efforts unrelated to criminal proceedings, Friedrich noted that there was no evidence that the agencies involved had violated the agreement or the law, and that the advocacy groups' fears were based on media reports speculating that the Trump administration was 'seeking location information for 700,000 or alternatively seven million, illegal immigrants.' 'On this limited record, the Court cannot assume that DHS intends to use the shared information to facilitate civil rather than criminal proceedings,' the judge wrote, adding that should the DHS decide to abort the criminal investigation and instead pursue civil deportation, the agency would have to return the information to the IRS and be barred from using it in any way. The court also rejected claims that the IRS had unlawfully reversed its past position. While the advocacy groups pointed to older IRS guidance suggesting address-only requests could not be honored, Friedrich found no binding policy had been rescinded. He concluded that even if there had been a change, it was not subject to review under the Administrative Procedure Act. The judge's decision followed a previous March A request for comment sent to the plaintiffs' attorney was not immediately returned.
Boston Globe
12-05-2025
- Business
- Boston Globe
Judge refuses to block IRS from sharing tax data to identify and deport people illegally in US
The decision comes less than a month after former acting IRS commissioner Melanie Krause resigned over the deal allowing ICE to submit names and addresses of immigrants inside the U.S. illegally to the IRS for cross-verification against tax records. Advertisement The IRS has been in upheaval over Trump administration decisions to share taxpayer data. A previous acting commissioner announced his retirement earlier amid a furor over Elon Musk's Department of Government Efficiency gaining access to IRS taxpayer data. The Treasury Department says the agreement with ICE will help carry out President Donald Trump's agenda to secure U.S. borders and is part of his larger nationwide immigration crackdown, which has resulted in deportations, workplace raids and the use of an 18th century wartime law to deport Venezuelan migrants. The acting ICE director has said working with Treasury and other departments is 'strictly for the major criminal cases.' Advocates, however, say the IRS-DHS information-sharing agreement violates privacy laws and diminishes the privacy of all Americans. Advertisement
Yahoo
09-04-2025
- Business
- Yahoo
Another IRS chief steps down among Trump-imposed chaos at the agency
It's not uncommon for immigration opponents on the right to argue that undocumented immigrants don't pay taxes in the United States. Those claims have long been false, and they looked a little worse when the Department of Homeland Security asked the IRS to share information filed by undocumented taxpayers with Immigration and Customs Enforcement. Complicating matters, the IRS ultimately agreed to share the sensitive information. It's an unprecedented move. Indeed, officials have long guarded sensitive taxpayer information with great care, even shielding the information from other agencies. But the Trump administration is determined to intensify its mass deportation policy, and so the Internal Revenue Service succumbed to pressure. As The Associated Press reported, developments generated an important resignation. The acting commissioner of the IRS is resigning over a deal to share immigrants' tax data with Immigration and Customs Enforcement for the purpose of identifying and deporting people illegally in the U.S., according to two people familiar with the decision. Melanie Krause, who had served as acting head since February, will step down over the new data-sharing document signed Monday by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem. The agreement will allow ICE to submit names and addresses of immigrants inside the U.S. illegally to the IRS for cross-verification against tax records. If you're thinking that you've seen a lot of headlines lately about IRS commissioners stepping down, it's not your imagination. In January, then-IRS Commissioner Danny Werfel, who was nominated by Joe Biden, resigned on Inauguration Day as Donald Trump prepared to replace him. Werfel was followed by Doug O'Donnell, a longtime IRS official, who stepped down a month later. O'Donnell was followed by Krause, who resigned in the wake of the IRS-DHS deal. As a rule, it's not a great sign when a powerful and important government agency loses three chiefs in less than four months. (A Politico report added that several other key IRS officials, including the agency's chief financial, privacy and risk officers, are also planning to leave, though this has not been independently verified by MSNBC or NBC News.) Krause's temporary successor shouldn't get too comfortable, meanwhile, since the president has nominated former Republican Rep. Billy Long to lead the tax agency — despite the former Missouri congressman's highly controversial record, which includes championing legislation to abolish the agency that Trump now wants him to lead. In case that weren't quite enough, the IRS is also dealing with DOGE-driven disruptions, which are poised to be extraordinarily expensive, while simultaneously abandoning a much-needed IRS modernization initiative and taking steps to politicize the agency's criminal division. All of this is happening ahead of the April 15 'Tax Day' deadline. Politico's report added, 'It is still unclear whether the turmoil at the agency has affected tax return or refund processing, a concern voiced by many tax industry professionals.' This article was originally published on
CBS News
09-04-2025
- Business
- CBS News
IRS acting commissioner resigning over Treasury's plan to share immigrant tax data with ICE
The acting commissioner of the Internal Revenue Service is expected to resign after the agency disclosed that it has agreed to share immigrants' tax data with Immigration and Customs Enforcement to help identify and deport undocumented immigrants. According to a source familiar with the situation and a statement from the Treasury Department, Melanie Krause is leaving the agency due to disagreement over the Treasury Department's decision to share IRS taxpayer data with the Department of Homeland Security. "Melanie Krause has been leading the IRS through a time of extraordinary change. As we focus on IT modernization and re-organize the agency to better serve the taxpayer, we are also in the midst of breaking down data silos that for too long have stood in the way of identifying waste, fraud, and abuse and bringing criminals to justice," a Treasury spokesperson said in a statement. Krause is planning to resign after opting into the agency's recently offered Deferred Resignation Program, the source told CBS News on Tuesday. The Washington Post was the first to report on her resignation. Late Monday, the IRS disclosed its memorandum of understanding with the Department of Homeland Security in a court filing in a lawsuit filed by Public Citizen, which seeks to bar the Treasury Department from disclosing tax return information to immigration enforcement authorities. According to the exhibit, the IRS will review all requests and account for disclosures made under the memorandum. While some of the memo is highly redacted, it reveals that the IRS will disclose to ICE the names and addresses of immigrants, among other information. The new data-sharing arrangement will allow ICE to cross-verify the names and addresses of immigrants inside the U.S. illegally with their IRS tax records. Treasury argues that the agreement will help carry out President Trump's agenda to secure U.S. borders and is part of his larger nationwide immigration crackdown, which has resulted in deportations, workplace raids, and the use of the Alien Enemies Act to deport Venezuelan migrants . Advocates say the IRS-DHS information sharing agreement violates longstanding privacy laws and diminishes the privacy of all Americans. A Treasury official who spoke on the condition of anonymity to explain the agency's thinking on the agreement said the basis for the agreement is founded in "longstanding authorities granted by Congress, which serve to protect the privacy of law-abiding Americans while streamlining the ability to pursue criminals." Todd Lyons, acting ICE director, told reporters at the Border Security Expo in Phoenix on Tuesday that the agreement would help ICE find people who are collecting benefits they aren't entitled to and are "kind of hiding in plain sight" using someone else's identity. Working with Treasury and other departments is "strictly for the major criminal cases," Lyons said. The IRS has already been called upon once to help with immigration enforcement earlier this year. Noem in February sent a request to Bessent to borrow IRS Criminal Investigation workers to help with the immigration crackdown, according to a letter obtained by The Associated Press. It cites the IRS' boost in funding, though the $80 billion infusion of funds the federal tax collection agency received under the Democrats' Inflation Reduction Act has already been clawed back. Tax law experts for the NYU Tax Law Center wrote Monday that the agreement "threatens to violate the rights that many more Americans have under longstanding laws that protect their tax information from wrongful disclosure or dissemination." "In fact, it is difficult to see how the IRS could release information to DHS while complying with taxpayer privacy statutes," they said, "IRS officials who sign off on data sharing under these circumstances risk breaking the law, which could result in criminal and civil sanctions." The memo states that the IRS and ICE "will perform their duties in a manner that recognizes and enhances individuals' right of privacy and will ensure their activities are consistent with laws, regulations, and good administrative practices." Aaron Navarro and Nicole Sganga contributed to this report.
