IRS Shares Tax Data of 1.28 Million Individuals with DHS

IRS Discloses Tax Data to Immigration Enforcement

The Internal Revenue Service (IRS) is facing mounting legal challenges after it was revealed that the agency improperly shared confidential tax information of approximately 1.28 million individuals with the Department of Homeland Security (DHS) for use in immigration enforcement operations.

IRS Chief Risk Officer Dottie Romo confirmed the disclosure in a February 12, 2026 court declaration, stating that Immigration and Customs Enforcement (ICE) had submitted formal requests for the names and addresses of 1.28 million individuals held in IRS tax records.

What Was Disclosed

Scope of the Data

The disclosed records reportedly include information drawn from Individual Taxpayer Identification Number (ITIN) filings. ITINs are issued by the IRS to individuals who are required to file taxes but do not qualify for a Social Security Number, a category that includes many undocumented immigrants and foreign nationals.

• ITIN filers — Individuals without Social Security Numbers who file taxes using ITINs
• Associated household members — Names and addresses linked to joint filings
• Historical records — Data spanning multiple tax years

Legal Challenges

ACLU Lawsuit

The American Civil Liberties Union (ACLU) filed a federal lawsuit challenging the legality of the data sharing arrangement, arguing that it violates:

1. Internal Revenue Code Section 6103 — Federal law strictly limiting the disclosure of tax return information, with narrow exceptions that do not include immigration enforcement
2. Fourth Amendment protections — Warrantless bulk sharing of personal data constitutes an unreasonable search
3. Due process rights — Individuals whose data was shared were not notified or given an opportunity to challenge the disclosure

Key Legal Questions

Privacy and Civil Liberties Implications

Erosion of Taxpayer Trust

Tax compliance in the United States relies heavily on the principle that tax filings are confidential. If taxpayers believe their information may be used against them for non-tax purposes, compliance rates could decline significantly.

• ITIN filing rates may drop as individuals fear immigration consequences
• Tax revenue losses could follow reduced voluntary compliance
• Broader distrust of government data collection may extend beyond immigrant communities

Chilling Effect on Immigrant Communities

Privacy advocates warn that the disclosure creates a chilling effect that extends well beyond the 1.28 million directly affected individuals:

• Immigrant families may avoid filing taxes entirely
• Communities may become distrustful of government services broadly
• Workers may shift to cash-only arrangements, reducing economic transparency
• Mixed-status families face particular vulnerability, as a single filing can expose multiple household members

Historical Context

Section 6103 of the Internal Revenue Code was enacted in 1976 specifically to prevent the kind of cross-agency data sharing that occurred during the Nixon administration, when the IRS was weaponized against political opponents. The statute has been considered one of the strongest privacy protections in federal law for nearly five decades.

Prior to this disclosure, the IRS had consistently maintained that tax return data could not be shared with other agencies except under narrowly defined circumstances such as criminal tax investigations or specific Congressional requests.

What Happens Next

• Federal court hearings on the ACLU lawsuit are expected in the coming weeks
• Congressional oversight committees have requested briefings from both Treasury and DHS
• Privacy advocacy groups are calling for an immediate halt to all data sharing pending judicial review
• The outcome could set precedent for cross-agency data sharing involving other sensitive government records

Sources

• Grand Pinnacle Tribune — IRS Shares Tax Data of 1.28 Million with DHS
• ACLU — Legal Challenge to IRS-DHS Data Sharing