A federal judge blocked the Internal Revenue Service (IRS) from sharing immigration data with Immigration and Customs Enforcement (ICE). The judge explained data sharing violated taxpayer’s privacy rights. This marks the second time a federal judge blocked immigrant data sharing between the two agencies.

The judge explained that immigration data sharing between the IRS and ICE could negatively impact the tax filings of immigrants in the country. Fear around wrongful arrest might hurt taxpayer revenue, per the judge. Immigration authorities mainly use tax records for identifying the addresses of naturalized citizens slated for detention and even removal.

The recent decision isn’t the first. In November 2025, a U.S. district judge issued a block on immigrant data sharing between the two agencies. That judge explained the agreement violated a taxpayer confidentiality law.

The U.S. Treasury and Department of Homeland Security (DHS) first entered an immigrant data sharing agreement in August, 2025. Then the IRS disclosed the addresses of forty-seven thousand taxpayers to ICE. The move triggered the lawsuit leading to the first judicial block.

Historically, taxpayer data is concealed by the IRS. The one exception is during non-tax criminal investigations. The government has already appealed the order, but the block stands until overturned by an appeal. ICE explained it hasn’t used any information shared by the IRS for immigration enforcement operations.

As always, Immigration USA actively monitors ongoing U.S. immigration news. If you have questions about any U.S. immigration related issue, please contact us. Working with an experienced attorney ensures you get the right advice based on the most recent laws and policy updates. In an ever-evolving immigration landscape, we’re with you every step of the way.