A federal judge blocked Immigration and Customs Enforcement (ICE) from using taxpayer data to find illegal immigrants. Obama-appointed U.S. District Judge Indira Talwani ordered the IRS to stop sharing home addresses with ICE while the court reviews the case.
“In this instance, both the balance of the hardships and the public interest tilt heavily towards enjoining the implementation of the interagency data-sharing agreements,” Talwani wrote. “First, the federal tax system is built upon a foundation of the taxpayer’s systemic trust and confidence. The implementation of agreements contrary to law erodes that foundation and undermines the public interest in a functioning tax system.”
“Second, there is significant hardship in the potential misidentification of noncitizens and citizens alike that could lead to wrongful arrests, detention and even removal,” the judge argued. “Because the information sought was not for any specific criminal investigation, the data-sharing will necessarily include both the data of noncitizens subject to criminal prosecution and those who are not subject to criminal prosecution because of their deferred action status.”
Talwani further stated that because a “significant portion” of immigrants “live in shared homes or in the same apartment complexes,” there is a risk of “misidentification of taxpayers by IRS and ICE, and subsequent arrest by ICE.”
“Third and finally, the government has failed to show that the provision of taxpayer addresses is integral to law enforcement, let alone to the President’s promise to start enforcement with the ‘worst of the worst,'” she added.
Talwani’s order went on to block the implementation of the IRS-ICE memorandums and agreements, and prohibited DHS officials from “inspecting, viewing, using, copying, distributing, relying on, or otherwise acting upon any return information that had been obtained from or disclosed by the IRS Defendants pursuant to the information sharing arrangements, including the information received August 7, 2025.”
A March report from the Washington Post explained that the agreement involved ICE submitting “names and addresses of suspected undocumented immigrants to the IRS to cross-reference with confidential taxpayer databases.”
