Federal Judge Rules IRS Illegally Shared Taxpayer Data with ICE

IRS violated confidentiality laws by disclosing taxpayer addresses to immigration authorities thousands of times

Published on Feb. 27, 2026

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A federal judge ruled that the IRS broke the law by disclosing confidential taxpayer information 'approximately 42,695 times' to Immigration and Customs Enforcement (ICE). The judge found that the IRS violated IRS Code 6103, one of the strictest confidentiality laws in federal statute, by sharing taxpayer addresses with ICE as part of an agreement between the agencies to share information on immigrants in the country illegally.

Why it matters

This ruling is significant because it confirms that the IRS had an unlawful policy of releasing taxpayer information to ICE in violation of laws designed to protect taxpayer privacy. The decision supports ongoing legal challenges to the data-sharing agreement between the IRS and Department of Homeland Security, which has faced criticism from privacy advocates.

The details

According to the judge's ruling, the IRS shared taxpayer information with ICE as part of an agreement signed last April that allowed ICE to submit names and addresses of immigrants in the country illegally to the IRS for cross-verification against tax records. An IRS official's declaration revealed that the agency provided DHS with information on 47,000 of the 1.28 million people that ICE requested, and in most cases also gave ICE additional address information in violation of privacy rules.

  • The data-sharing agreement was signed in April 2026.
  • The judge's ruling was issued on February 27, 2026.

The players

Colleen Kollar-Kotelly

A U.S. District Judge who ruled that the IRS violated confidentiality laws by disclosing taxpayer information to ICE.

Dottie Romo

The IRS' chief risk and control officer, who filed a declaration revealing the extent of the IRS's improper data sharing with ICE.

Nina Olson

The founder of the Center for Taxpayer Rights, which has sued the government over the IRS-ICE data sharing agreement.

Scott Bessent

The Treasury Secretary who signed the data-sharing agreement with the Department of Homeland Security.

Kristi Noem

The Homeland Security Secretary who signed the data-sharing agreement with the Treasury Department.

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What they’re saying

“This confirms what we've been saying all along: that the IRS has an unlawful policy that violates the Internal Revenue Code's protections by releasing these addresses in a way that violates the law's requirements.”

— Nina Olson, Founder, Center for Taxpayer Rights (Fortune)

What’s next

The government is appealing the case, but the judge's ruling is significant because it supports the decision on appeal. Two separate court orders have also blocked the agencies from massive transfers of taxpayer information and blocked ICE from acting upon any IRS data in its possession.

The takeaway

This case highlights the importance of protecting taxpayer privacy and the need for government agencies to follow strict confidentiality laws. The ruling raises concerns about the IRS's data-sharing practices and the potential misuse of taxpayer information, which could undermine public trust in the tax system.