Immigrant advocacy organizations have filed a lawsuit against the IRS and Treasury Secretary Scott Bessent, seeking to prevent the federal government from sharing taxpayer data with the Department of Homeland Security (DHS) to assist in immigration enforcement efforts.
According to a government memo, DHS has requested last known addresses, phone numbers, and email addresses from the IRS for taxpaying individuals without Social Security numbers. The request has raised legal questions about whether such data sharing falls within federal regulations or violates taxpayer privacy protections.
Legal Debate Over Taxpayer Privacy
Federal law strictly limits how the IRS can share taxpayer data. While there are exceptions allowing the president or executive branch to request specific tax returns, the law does not permit bulk data collection for immigration enforcement.
The lawsuit argues that any IRS compliance with DHS’s request would violate the Internal Revenue Code, which restricts the use of tax data for purposes unrelated to tax enforcement.
IRS Acting Director Melanie Krause has reportedly been reviewing legal pathways for the IRS to respond to DHS’s request, drawing scrutiny over whether such actions align with privacy protections in federal law.
Advocacy Groups Challenge Data Sharing
The lawsuit was filed by Centro de Trabajadores Unidos and Immigrant Solidarity DuPage, two advocacy groups based in Chicago. Their complaint contends that if the IRS provides this data, it would give DHS and ICE direct access to a database of undocumented taxpayers, potentially making immigration enforcement more efficient.
The IRS issues Individual Taxpayer Identification Numbers (ITINs) to individuals who do not have Social Security numbers, allowing them to pay taxes legally. Advocacy groups argue that taxpayers using ITINs were previously assured confidentiality, and they contend that this new request could alter that understanding.
The complaint also references an executive order that has increased immigration enforcement activity, with ICE reportedly raising its daily arrest target to approximately 1,500 individuals per day.
Data Access Concerns and Related Lawsuits
This lawsuit follows a separate legal challenge filed last month against the IRS and the Department of Government Oversight and Ethics (DOGE), which sought to block the IRS from sharing tax data with Elon Musk’s team. That lawsuit also demanded that DOGE erase any taxpayer data it had already obtained.
White House Deputy Chief of Staff Stephen Miller has stated that government data-sharing efforts are focused on fraud prevention, while opponents of the lawsuits argue that they represent a push for greater data transparency.
A Legal Fight Over Privacy and Data Protection
The case raises broader legal and policy questions about whether taxpayer data should be used for immigration enforcement. The outcome could impact future government requests for bulk data sharing across multiple federal agencies.
As the lawsuit moves forward, courts will determine whether DHS has the legal authority to obtain IRS tax data for immigration enforcement, or if such actions conflict with existing privacy protections under federal law.
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