Federal judge rules IRS can share data on illegal immigrants with DHS

On Monday, a federal judge ruled that the Internal Revenue Service (IRS) can legally share certain taxpayer information with the Department of Homeland Security (DHS), allowing US Immigration and Customs Enforcement (ICE) to obtain some data on illegal immigrants that the administration is aiming to deport. The ruling denied claims for an injunction made in a lawsuit filed by multiple immigrant rights groups.

US District Judge Dabney Friedrich dismissed the legal challenge from the group. “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," the judge wrote, Fox News reported.

The lawsuit was brought against Treasury Secretary Scott Bessent and the Trump administration by nonprofits, including Centro de Trabajadores Unidos and Immigrant Solidarity DuPage, because of the administration's sharing of information between the IRS and DHS. The groups argued that the data sharing violated taxpayer privacy rights. However, Judge Friedrich ruled that the agreement between the agencies can be shared if it is limited to criminal investigations, but cannot be used for civil matters.

“The Court agrees that requesting and receiving information for civil enforcement purposes would constitute a cognizable injury, but none of the organizations have established that such an injury is imminent,” Friedrich said. "As the plaintiffs acknowledge, the Memorandum only allows sharing information for criminal investigations."

A memorandum of understanding that was previously established by the DHS and the IRS allows for the sharing of information in order to pursue criminal investigations, while also protecting sensitive taxpayer information concerning civil matters.

The memorandum permits DHS to confirm names and suspected addresses of illegal immigrants with outstanding deportation orders. The IRS may then cross-reference tax records to help ICE confirm those addresses.

Tricia McLaughlin, DHS assistant secretary of public affairs, defended the program, stating, “Information sharing across agencies is essential... so we can neutralize [public safety and terror threats], scrub these individuals from voter rolls, as well as identify what public benefits these aliens are using at taxpayer expense.” She added, “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.”

The ruling supports a broader initiative by the Trump administration to crack down on illegal immigration. Since taking office, Trump has prioritized immigration enforcement with deportations as well as border security.