Judge Allows IRS to Share Tax Data to Help Identify, Deport Undocumented Immigrants

A federal judge stated on Monday that he would not prevent the Internal Revenue Service from providing Immigration and Customs Enforcement with information regarding the tax returns of immigrants for the purpose of identifying and deporting individuals who are present in the United States unlawfully.

U.S. District Judge Dabney Friedrich dismissed a request for a preliminary injunction in a lawsuit that was brought forward by nonprofit organizations. This decision was a victory for the Trump administration. They contended that undocumented immigrants who pay taxes are entitled to the same privacy safeguards as citizens of the United States and immigrants who are legally present in the nation.

In the past, Friedrich, who was chosen by President Donald Trump, had consistently declined to issue an interim order regarding the matter.

ICE is able to submit the names and addresses of immigrants who are illegally present in the United States to the Internal Revenue Service for cross-verification against tax records. This decision comes less than a month after Melanie Krause, who had previously served as the interim commissioner of the Internal Revenue Service, resigned over the pact.

Despite the fact that the plaintiffs are dissatisfied with the court’s decision to reject our preliminary injunction, the dispute is not yet done. Alan Butler Morrison, the attorney who represents the charity organizations, indicated in an email that they are “considering our options.” According to him, the decision of the judge made it very obvious that the Department of Homeland Security and the Internal Revenue Service are not permitted to go beyond the stringent boundaries that were outlined in the case.

“The Department of Homeland Security has not yet made any formal requests for taxpayer data,” Morrison said. “Plaintiffs will be keeping a close watch to ensure that the defendants keep their promises to comply with the law and not use the exception for unlawful purposes.”

When the Trump administration made choices to disclose taxpayer data, the Internal Revenue Service (IRS) was thrown into chaos. A former acting commissioner made the announcement previously, in the midst of a controversy regarding Elon Musk’s Department of Government Efficiency having access to information regarding taxpayers of the Internal Revenue Service.

As part of President Donald Trump’s larger nationwide immigration crackdown, which has resulted in deportations, workplace raids, and the use of a wartime law from the 18th century to deport Venezuelan migrants, the Treasury Department has stated that the agreement with Immigration and Customs Enforcement (ICE) will assist in carrying out President Trump’s agenda to reinforce the security of the United States’ borders.

Working with Treasury and other departments is “strictly for the major criminal cases,” according to the acting director of Immigration and Customs Enforcement (ICE).

Advocates, on the other hand, assert that the information-sharing deal between the IRS and DHS violates privacy rules and reduces the level of privacy enjoyed by all Americans.

Friedrich stated in her decision that the arrangement does not violate the Internal Revenue Code, which means that the Internal Revenue Service has not made significant changes to the way that it manages information pertaining to taxpayers. Friedrich said that the Trump administration has instead made the decision to assist with criminal investigations by utilizing “statutorily authorized tools” that are already in existence that are already in use.

According to the judge, the Internal Revenue Service (IRS) is permitted by federal law to disclose certain taxpayer information to other authorities if the material in question has the potential to assist in the prosecution of criminals and the agency that is making the request satisfies specific conditions.

Friedrich stressed that this does not imply that the Internal Revenue Service is able to hand over all of the information that it possesses.

To begin, the agency that is conducting the investigation must already be in possession of the name and address of the individual whose information is being requested. In addition, the agency is required to give the Internal Revenue Service with the information in question, along with the time period to which the information pertains, the legal provision that permits the information to be disclosed, and the rationale behind why any information disclosed by the IRS would be pertinent to the inquiry.

“To put it another way, the Internal Revenue Service is permitted to disclose information that it obtains from itself (for example, through audits), but it is not permitted to disclose information that it obtains solely from the taxpayer (for example, a tax return that the taxpayer has filed),” Friedrich wrote. It was brought to her attention that the statute includes a key exemption, which states that the identity of a taxpayer, which may include the individual’s name, address, or taxpayer identification number, is not considered to be part of the protected tax return information.

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