Immigrant Groups Sue to Block IRS Data Sharing for Deportation Purposes

Immigrant advocacy groups have launched legal action against the IRS and Treasury Secretary Scott Bessent to prevent the department from providing taxpayer information to the Department of Homeland Security (DHS) for immigration enforcement. The lawsuit, filed by Chicago-based groups Centro de Trabajadores Unidos and Immigrant Solidarity DuPage, challenges DHS’s recent request for last known addresses, phone numbers, and email addresses of individuals who have paid taxes despite lacking legal status.

According to the complaint, the Internal Revenue Code strictly limits the IRS’s ability to share taxpayer data beyond narrow exceptions. While the law permits the release of individual tax returns under specific circumstances, it expressly forbids the bulk collection of data to facilitate immigration actions. The suit argues that such disclosure would not only violate statutory safeguards but also expose millions of taxpayers to the administration’s aggressive deportation tactics.

A memo obtained by the Washington Post revealed that DHS sought this information as part of its efforts to enhance a mass deportation programme. Despite the IRS holding records on undocumented individuals—who often file returns using Individual Taxpayer Identification Numbers (ITINs) instead of Social Security numbers—recently appointed acting Director Melanie Krause has indicated a desire to comply with DHS’s request within the bounds of the law.

This legal challenge emerges amidst reports that President Trump’s administration has set arrest quotas for ICE agents, intensifying fears over potential widespread deportations. In a related development, a separate suit has been filed to stop the IRS from granting Elon Musk’s team access to similar data, reflecting mounting concerns over the misuse of sensitive taxpayer information.