Efforts to locate illegal immigrants who have already been ordered to leave the country could soon involve help from the IRS. Under a plan nearing approval, immigration authorities would be able to check addresses through IRS tax filings for confirmation before moving forward with enforcement actions.
The draft agreement would not permit open access to tax records. Instead, ICE would send the individual’s name and removal date along with a current address to the IRS. If the address matches what’s on the tax return, the IRS would verify it. No additional data would be shared. The request process would be limited to Homeland Security Secretary Kristi Noem and Acting ICE Director Todd Lyons.
The Internal Revenue Service (IRS) raked in a record $4.9 trillion in taxes from Americans in the last fiscal year, per the Treasury Inspector General for Tax Administration.
— unusual_whales (@unusual_whales) January 8, 2024
The IRS has traditionally maintained strict limits on how tax information can be used. But recent leadership changes have shifted the agency’s approach. Doug O’Donnell, the acting commissioner who denied a DHS request to verify information for 700,000 suspected illegal immigrants, stepped down immediately after the decision. His replacement, Melanie Krause, is reportedly open to a more cooperative relationship with immigration authorities.
🚨🇺🇸 IRS NEARING DEAL TO SHARE TAX DATA WITH ICE FOR IMMIGRATION ENFORCEMENT
The IRS is close to finalizing a data-sharing agreement with U.S. Immigration and Customs Enforcement (ICE), allowing immigration agents access to confidential taxpayer records to aid Trump’s… https://t.co/IUo23cMDvv pic.twitter.com/9siwDZeUNX
— Mario Nawfal (@MarioNawfal) March 23, 2025
For decades, the IRS has encouraged illegal immigrants to file tax returns using an Individual Taxpayer Identification Number, or ITIN. This allowed the agency to collect taxes while promising not to share data with immigration enforcement. Returns filed under an ITIN often include details about home addresses, income and workplaces.
According to The Washington Post, career staff at the IRS have warned that the deal could violate legal limits on information sharing. The law does allow some exceptions for criminal investigations, but internal critics argue that using those provisions for civil immigration enforcement crosses a line.
The Trump administration also replaced the IRS’s top lawyer, who had voiced opposition to sharing tax data for deportation cases. The change in legal leadership removed one of the biggest roadblocks to the plan.
In the past, Homeland Security has also asked the IRS to audit businesses believed to be employing illegal immigrants.
