IRS, DHS & ITIN Updates
(Updated March 16, 2026) — Tax information remains protected by the long-established federal privacy laws. As of February 27, 2026, two federal courts are blocking the Internal Revenue Service (IRS) from sharing data with the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE), and the DHS from viewing or using the data they already acquired through a data-sharing agreement made between the IRS and DHS in April 2025. Both courts also found this data-sharing agreement likely unlawful and would lead to impermissible use of taxpayer data.
These are important wins for everyone as they uphold the protection of taxpayers’ data. The court has stopped DHS and ICE from using or viewing taxpayers’ data unless they meet the strict guidelines and exceptions under IRS privacy laws.
Background
In 2025, the DHS made multiple attempts to use the IRS’s taxpayer information for immigration enforcement purposes. ICE first requested information in February for about 700,000 people who were under final orders of removal, which was declined by then IRS Deputy Commissioner Douglas W. O’Donnell. In April, Treasury Secretary Scott Bessent made an unprecedented agreement with DHS Secretary Kristi Noem, allowing ICE to request personal information from the IRS of individuals with final removal orders or under criminal investigations. On August 7, ICE requested information on 1.28 million taxpayers, of which the IRS disclosed about 47,000 taxpayers that matched their records.
Several lawsuits have been filed in efforts to uphold the data protections that protect taxpayers’ data collected by the IRS. Pertaining to the Center for Taxpayer Rights et al. v. Internal Revenue Service et al. court case from November 2025, a federal court in the District of Columbia ordered a stay (or temporary suspension) on the IRS sharing data with ICE. Separately, in the Community Economic Development Center of Southeastern Massachusetts v. Bessent court case from February 2026, a federal court in Massachusetts prohibited DHS from using or viewing data from the data-sharing agreement. In short, there are two court orders currently in effect blocking the IRS, ICE, and DHS from sharing and using taxpayer data.
How Does This Impact Everyone?
The attempted cooperation between DHS and the IRS has greater implications, affecting the integrity of the tax system and the privacy rights of all taxpayers. The IRS has long assured individuals that their tax information is confidential, a promise that encourages compliance and trust in the system. If that trust is broken, more people—regardless of immigration status—may become hesitant to file taxes accurately, fearing that their personal data could be used against them.
Moreover, such cooperation between these two entities sets a dangerous precedent: if one administration can use tax records for immigration enforcement, future administrations could justify similar breaches for other political or punitive purposes. This erosion of privacy protections threatens undocumented individuals and the fundamental rights of all taxpayers, including U.S. citizens.
Tax and legal professionals have also questioned the ethics behind DHS’s use of taxpayer data for immigration enforcement and integrity in adhering to privacy laws. Law experts from the Tax Law Center at NYU Law speculate that this agreement would likely lead to misidentifications, wrongful arrests, deportations, and imprisonments, given “DHS’s track record of errors when it comes to ‘identifying’ information.”
What Can I Do Right Now?
Contact your representatives in Congress and emphasize your concern for taxpayer privacy. Urge them to uphold privacy laws by publicly denouncing collaboration between the IRS and DHS and requesting the Treasury Secretary to protect taxpayer information as required by law. Download this fact sheet to learn about the importance of taxpayer privacy and upholding the integrity of our tax system.
Frequently Asked Questions
How is my tax information protected, and in what instances is it disclosed?
Federal law protects the confidentiality and privacy of taxpayer data, a law enacted by Congress directly after the Nixon administration abused IRS tax records to target political opponents. The IRS is prohibited from disclosing taxpayers’ information—even with other federal agencies—unless they fall within a specific exception, such as for tax administration purposes and non-tax criminal investigations. Read more about IRS’ privacy laws here.
Two recent court cases uphold existing protections for federal taxpayer data. First, in November 2025, a federal court in Washington, D.C. ordered a stay (or temporary suspension) on the IRS, DHS, and ICE from disclosing taxpayer data and found their new data-sharing agreement between the IRS and ICE likely unlawful and leading to impermissible use of taxpayer data. Secondly, in February 2026, a federal court in Massachusetts prohibited the DHS from further using or viewing the data they received through this agreement.
Why is ICE and the DHS trying to gain access to taxpayers’ data?
Why is the new data-sharing agreement between ICE and IRS controversial?
How do people without a Social Security Number pay taxes?
Can undocumented individuals apply for an ITIN at this time?
Should undocumented individuals interact with the IRS at this time?
In short, federal law requires individuals, regardless of their status, to file taxes if they generated taxable income or engaged in activities that require filing taxes. For individuals who are considered residents for tax purposes, check here if you are required to file a tax return. Nonresidents, check here if you are required to file a tax return.
To better understand what risks may be present with disclosing your information to the IRS, read NILC’s Data Privacy and Federal Taxes for Immigrant Taxpayers resource. NILC also addresses common questions from new and current ITIN holders on this page.
Additional Resources
- NILC’s FAQ: Data Privacy and Federal Taxes for Immigrant Taxpayers
- NILC’s FAQ: Individual Taxpayer Identification Number (ITIN)
- Asian Law Caucus’s FAQ on Filing Taxes with an ITIN
- NILC’s Know Your Rights Under the U.S. Constitution – No Matter Who Is President
- IRS Volunteer Income Tax Assistance (VITA) sites offering ITIN services
- How to get reliable immigration legal help
- Directory of organizations providing immigration legal help
