ICE Nearing Historic Deal with IRS to Aid in Deportations
Sarah Johnson
March 24, 2025
Brief
The IRS and ICE are nearing a first-of-its-kind agreement granting ICE access to taxpayer data to locate illegal immigrants, raising concerns over privacy and tax compliance.
The Internal Revenue Service (IRS) and U.S. Immigration and Customs Enforcement (ICE) are reportedly close to finalizing a groundbreaking agreement that would allow ICE access to taxpayer data for the purpose of locating illegal immigrants slated for deportation.
This potential deal, as reported by the Washington Post, would mark a significant shift in IRS policy, which has traditionally kept taxpayer information strictly confidential. Under the draft agreement, ICE would be able to cross-check the names and addresses of individuals with final removal orders against IRS tax records. The authority to submit these requests would be limited to Homeland Security Secretary Kristi Noem and acting ICE Director Todd Lyons.
In an extraordinary twist, the language of the agreement allows address verification for individuals "subject to criminal investigation" under immigration law, using a narrow loophole in IRS privacy laws that permits taxpayer data to be used in criminal probes. However, some IRS veterans are raising red flags, warning that this exception was never intended for immigration enforcement. They also fear it could discourage illegal immigrants from filing taxes, potentially jeopardizing billions in tax revenue.
The IRS has historically assured undocumented workers that their tax information would remain confidential, a stance that has encouraged compliance and brought in over 5 million tax returns from this group. Critics of the new policy argue that breaking this trust could lead to reduced tax collection. Longtime IRS employee Doug O'Donnell, who served as acting commissioner, recently resigned after rejecting a Department of Homeland Security (DHS) request for data on more than 700,000 illegal immigrants. He has since been replaced by Melanie Krause, rumored to be more open to collaboration with DHS.
This development comes as President Donald Trump ramps up efforts to fulfill his campaign promise of intensified deportations. His administration appears determined to leverage every available tool to bolster immigration enforcement, even pushing into historically off-limits areas like IRS data.
While the agreement has yet to be finalized, its implications are already sparking debate. Will this move become a game-changer for immigration enforcement, or will it backfire by undermining trust and tax compliance? For now, both ICE and the IRS are staying tight-lipped, with no immediate comment on the matter.
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Editor's Comments
This is a classic case of a moral gray area turned policy battleground. On one hand, you have the need for law enforcement to use every tool at its disposal. On the other, you have the IRS's longstanding promise of confidentiality, which has been crucial in collecting taxes from undocumented workers. Breaking that trust feels like opening Pandora’s box—not to mention, it raises the question of whether this is more about deportation numbers than sound policy. Also, replacing a 38-year veteran with someone more 'cooperative' feels, let’s just say, convenient.
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