IRS to Share Undocumented Immigrants’ Tax Data with ICE Under New Agreement

In a controversial move drawing national attention, the Internal Revenue Service has agreed to share the tax records of undocumented immigrants with Immigration and Customs Enforcement (ICE).

The decision was formalized in a memorandum of understanding filed Monday between the IRS and the Department of Homeland Security. According to the agreement, ICE can now request specific tax information to assist in investigations of undocumented immigrants who have remained in the United States after receiving a final deportation order from an immigration judge.

The unprecedented sharing of personal tax data with immigration authorities has raised alarms among legal experts, privacy advocates, and immigrant rights organizations. Many fear the move could undermine trust in the tax system, particularly among undocumented workers who pay taxes using Individual Taxpayer Identification Numbers (ITINs).

According to a report from The Washington Post, acting IRS Commissioner Melanie Cross is planning to resign, reportedly in part due to being bypassed in the decision-making process behind the new policy.

Critics of the agreement argue that it weaponizes confidential financial information and could deter immigrants from filing taxes—a practice many undertake voluntarily despite lacking legal status. Supporters, however, claim the data sharing is necessary for national security and immigration law enforcement.

The memorandum marks a significant shift in the relationship between tax agencies and immigration enforcement, and its broader implications are likely to spark ongoing legal and political debate.

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