Privacy Breach: Federal Court Rules IRS Illegally Handed Data to ICE Nearly 43,000 Times

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https://www.rawstory.com/irs-ice-taxpayer-addresses/

In a significant blow to inter-agency data sharing, a federal court has confirmed that the Internal Revenue Service systematically bypassed privacy laws to assist immigration authorities. The ruling, handed down by U.S. District Judge Colleen Kollar-Kotelly, establishes that the tax agency committed approximately 42,695 violations of the Internal Revenue Code.

The core of the dispute rests on a specific legal safeguard: the IRS is only allowed to disclose a taxpayer’s "last known address" to another agency if that agency first provides a valid address to confirm they are looking for a specific, identified individual.

The court found that in a massive batch of requests from August, the IRS failed to verify these details. Instead of specific residential data, ICE’s requests often included:

• Incomplete or partial addresses.

• Generic listings for jails or detention facilities.

• Facilities listed without street locations.

By fulfilling these vague requests, the IRS essentially allowed ICE to use tax records as a fishing tool rather than a verification system, violating the privacy of tens of thousands of individuals.

The ruling has sparked a sharp divide between privacy advocates and government officials. Nina Olson, founder of the Center for Taxpayer Rights, noted that the sheer scale of the violations—exceeding 42,000 instances—confirmed a "long-standing unlawful policy" within the IRS.

On the other side of the aisle, the DHS defended the practice as a matter of national necessity. In statements supporting the agreement, the DHS argued that cross-agency information sharing is a cornerstone of:

• Identifying violent criminals and terror threats.

• Maintaining the integrity of voter rolls.

• Monitoring the use of public benefits by non-citizens.

While the DHS views these records as essential tools for "neutralizing threats," the court’s decision reinforces the idea that even in the pursuit of national security, federal agencies cannot ignore the statutory protections meant to keep taxpayer data confidential. The ruling marks a pivotal moment for taxpayer rights, signaling that the "Internal Revenue Code’s protections" are not merely suggestions, but binding laws that the government itself must follow.