US Court Allows IRS to Share Immigrant Tax Data With ICE

A federal appeals court in Washington has ruled that the Internal Revenue Service (IRS) may continue sharing limited taxpayer data with immigration authorities, rejecting an effort by immigrant rights groups to temporarily block the practice.

A three-judge panel of the U.S. Court of Appeals for the D.C. Circuit on Tuesday denied a request for a preliminary injunction filed by Centro de Trabajadores Unidos and several nonprofit organizations. The groups are challenging a data-sharing agreement signed in April 2025 between Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem.

Under the agreement, U.S. Immigration and Customs Enforcement (ICE) is permitted to submit names and addresses of undocumented immigrants to the IRS to verify information against tax records.

In the court’s decision, Judge Harry T. Edwards stated that the plaintiffs were “unlikely to succeed on the merits” of their case, noting that the information being shared does not fall under protections provided by IRS privacy laws.

Centro de Trabajadores Unidos did not immediately respond to requests for comment.

Attorney General Pam Bondi praised the ruling, calling it a “crucial victory” for the administration. In a social media post, she said the decision supports efforts to make the country safer through immigration enforcement.

The Trump administration has argued that the data-sharing agreement supports President Donald Trump’s broader immigration crackdown and efforts to strengthen U.S. border security. The policy has been linked to increased deportations and workplace enforcement actions nationwide.

The agreement has faced controversy since its creation. Last year, the acting IRS commissioner resigned in protest over the deal. More recently, court filings revealed that the IRS mistakenly shared taxpayer information of thousands of individuals with the Department of Homeland Security.

According to a declaration from IRS Chief Risk and Control Officer Dottie Romo, the agency was able to verify about 47,000 of the 1.28 million names requested by ICE. In fewer than 5 percent of those cases, the IRS provided additional address information—raising concerns that taxpayer privacy rules may have been violated.