In a move that’s sending shockwaves through legal and immigrant advocacy circles, the Internal Revenue Service has entered into a contentious data-sharing pact with Immigration and Customs Enforcement (ICE), igniting a high-stakes courtroom battle over privacy, power, and the definition of criminality.
A Secret Agreement Comes to Light
Like a twist in a political thriller, a redacted memorandum of understanding surfaced late Monday in a D.C. federal court, revealing that the IRS has agreed to provide ICE with taxpayer records of noncitizens under criminal investigation—even when those investigations aren’t tax-related.
The agreement, now under intense scrutiny, was disclosed as part of a lawsuit filed by four immigration advocacy groups—Centro de Trabajadores Unidos, Immigrant Solidarity DuPage, Somos Un Pueblo Unido, and Inclusion Action for the City—who argue the arrangement dangerously oversteps legal boundaries.
Cracks in Confidentiality
At the heart of the legal storm is Section 6103 of the Internal Revenue Code, a bulwark designed to protect taxpayer confidentiality. Yet, as IRS Chief Privacy Officer Kathleen Evey Walters pointed out, the code holds exceptions—particularly when information is requested for criminal investigations.
So far, no data has been requested or handed over, Walters noted, but the agreement has laid the groundwork for potential disclosures.
In a legal defense filed by the U.S. Department of Justice, the government argues that ICE’s access is lawful:
