Photo by Sean Lee on Unsplash

In 2022 undocumented immigrants paid $96.7 billion in federal, state, and local taxes. 

Every year millions and millions of undocumented immigrants file taxes - taxes that require extensive and personally identifying information to be given to the U.S. government. 

Did you know that the Internal Revenue Service (IRS) has made a data sharing agreement with the Department of Homeland Security to support the Trump administration's efforts to deport undocumented immigrants?

That agreement was brought to court, and now a recent federal court ruling has cleared the way for the IRS to share taxpayer information with Immigration and Customs Enforcement (ICE), a controversial move that could have major implications for undocumented immigrants. 

On May 13, 2025, U.S. District Judge Dabney Friedrich denied a request to block the data-sharing agreement, ruling that the IRS's collaboration with ICE does not violate federal tax privacy laws. The agreement reportedly allows ICE to access information tied to Individual Taxpayer Identification Numbers (ITINs), which are commonly used by undocumented immigrants who pay taxes.

Critics of the agreement, including civil rights groups and some IRS officials, argue that the move weaponizes private tax data and risks setting a dangerous precedent. Legally, 26 U.S. Code § 6103 prohibits most disclosures of tax information, and opponents say this agreement pushes the limits of that law. There are certain limited exceptions, including with law enforcement agencies "for investigation and prosecution of non-tax criminal laws" with approval from a court, but this latest agreement and ruling seem to take that exception to an incomprehensible level. 

Amidst the ruling, the third leader of the IRS agency this year has resigned. Each IRS commissioner that has given notice has seemingly done so because of their concerns about the Trump administration's management of the agency.

If this new ruling is allowed to stand, these will likely be the impacts:

• Chilling effect: Fewer undocumented workers may file taxes, threatening state and federal revenue in the billions.

• Privacy concerns: Expanding government data-sharing could weaken protections for all taxpayers.

• Legal precedent: Other federal agencies may seek similar access, escalating enforcement efforts.

Legal challenges are likely to continue in this case, and we will keep you updated as they do. 

If you need assistance filing for an immigration petition, you can reach us at (757) 422-8472, or send us a message on our website. You can also schedule an appointment with one of our attorneys by clicking on this link.