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Federal judge halts information sharing agreement between IRS and ICE under Trump administration

Federal judge halts information sharing agreement between IRS and ICE under Trump administration

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Chad Wolf, the former Acting Secretary of Homeland Security, shared his thoughts during an appearance on “America’s Newsroom,” regarding Tom Homan’s recent choice to downsize federal operations in Minneapolis. This decision comes against the backdrop of a growing push to allow officials access to prisons for detaining particularly dangerous individuals.

A federal judge recently intervened, blocking the Internal Revenue Service (IRS) from sharing residential addresses with Immigration and Customs Enforcement (ICE). This ruling, deemed a setback for the Trump administration, occurred on a Thursday.

Indira Talwani, a U.S. district judge appointed by Barack Obama, contended that the sharing of such data might infringe on taxpayer privacy rights as outlined in the 1976 Tax Act. The ruling effectively prevents ICE and the IRS from both utilizing the data already shared and from any future exchanges until the matter is further examined in court.

According to Talwani’s order, key figures, including the Director of Homeland Security and the Acting Director of ICE, cannot access or act upon any return information obtained from the IRS through existing agreements.

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Moreover, Talwani’s judgment expressed concern not only for taxpayer confidentiality but also about how this information sharing might discourage immigrants from filing taxes. There’s also the risk of confusion leading to wrongful detentions. Notably, she highlighted that many immigrants often share similar last names and frequently reside in communal spaces, which could increase the odds of mistaken identity.

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This case involved several community organizations, including the Southeastern Massachusetts Community Economic Development Center, the National Parents Union, the National Korean American Service Education Consortium, and the UndocuBlack Network, Inc.

According to the order, the IRS and ICE formed a memorandum of understanding on April 7, 2025, to share taxpayer information in an effort to enhance federal immigration enforcement. Since then, ICE had made multiple requests for data which included millions of records. Although the IRS rejected the initial inquiries due to legal concerns, it later approved a request that led to the transfer of more than 47,000 addresses to ICE, but this information is currently on hold.

A spokesperson from the Department of Homeland Security voiced strong disagreement with the judge’s ruling, arguing that under the previous administration, the government was finally taking necessary steps to share information to address immigration issues. They criticized the current administration for allegedly failing to manage illegal immigration effectively.

Talwani’s ruling marks the second instance where a judge has blocked an IRS-ICE information-sharing agreement. The first was a ruling by U.S. District Judge Colleen Koller Kotelly, who similarly noted that such actions contravened taxpayer confidentiality laws.

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