IRS Restricts Tax Data Sharing with ICE: What Immigrant Taxpayers Need to Know
- JP Marino, EA
- May 21
- 2 min read
In a move that’s generating both relief and controversy, the Internal Revenue Service (IRS) has formalized a policy limiting the circumstances under which it can share taxpayer data with U.S. Immigration and Customs Enforcement (ICE). As of April 2025, the IRS is only authorized to share tax information in cases involving final deportation orders or active federal criminal investigations.
This change stems from a newly signed Memorandum of Understanding (MOU) between the Treasury Department and the Department of Homeland Security (DHS), outlining specific, narrow conditions for data-sharing between the IRS and ICE. Here's what taxpayers, especially those in immigrant communities, need to know
When Can the IRS Share Tax Information with ICE?
Under the updated agreement:
ICE can only request taxpayer data if the individual is the subject of a final deportation order or is part of an ongoing federal criminal investigation.
Requests must include a legal justification and be tied directly to enforcement actions related to immigration or criminal law.
Only limited information can be shared—such as names, addresses, and tax periods—and only if it directly relates to the specific case.
This means that routine immigration enforcement or status checks cannot be supported using IRS data, reinforcing some level of taxpayer privacy for undocumented individuals who are otherwise compliant with tax laws.
Why This Matters
Historically, tax data has been treated with strict confidentiality under federal law. Many undocumented immigrants file taxes using Individual Taxpayer Identification Numbers (ITINs), trusting that their compliance with tax laws will not be used against them by immigration enforcement agencies.
While the new policy limits ICE's access, some fear it could still create a chilling effect. Advocates worry that immigrant taxpayers might be deterred from filing their taxes altogether, fearing that doing so could eventually expose them to legal risks.
IRS Leadership Reacts
The decision has not been without internal consequences. Acting IRS Commissioner Melanie Krause resigned shortly after the policy’s release, expressing strong concerns about the erosion of taxpayer privacy and the potential for misuse of sensitive data.
Her resignation underscores the tension between inter-agency enforcement and the longstanding principle of taxpayer confidentiality—a cornerstone of the U.S. tax system.
How Immigrant Taxpayers Should Respond
At Marino Tax Solutions, we understand that news like this can be unsettling. However, it’s important to note:
Filing your taxes using an ITIN remains safe and lawful.
This agreement does not authorize blanket access to IRS records.
Staying compliant with tax obligations is still the best way to demonstrate good-faith participation in the U.S. system.
Final Thoughts
The IRS's restricted data-sharing with ICE marks a notable shift in federal enforcement policy. While limited in scope, it raises broader questions about privacy, trust, and the responsibilities of agencies in protecting taxpayer information.
For immigrant taxpayers navigating the complexities of tax compliance and immigration uncertainty, staying informed and supported is more important than ever.
Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered tax advice. Tax laws are complex and subject to change. Please consult with a tax professional like Marino Tax Solutions to discuss your specific circumstances.
