A federal judge has officially approved the Trump IRS data-sharing plan, allowing the Internal Revenue Service (IRS) to provide taxpayer information to federal immigration authorities. This decision is a significant win for Donald Trump’s immigration enforcement strategy, which aims to identify and deport undocumented immigrants using IRS data.
What Is the Trump IRS Data-Sharing Plan?
The Trump IRS data-sharing plan allows Immigration and Customs Enforcement (ICE) to access sensitive taxpayer information through a new agreement with the IRS. According to the ruling, the plan is intended to assist in criminal investigations involving immigrants who have defied deportation orders.
Judge Dabney Friedrich ruled that the agreement does not violate tax confidentiality laws under its current structure. She was appointed by Trump in 2017 and made it clear the Memorandum of Understanding (MoU) permits data sharing strictly for criminal enforcement—not civil deportation.
Why Immigrant-Rights Groups Oppose the Plan
Immigrant-rights groups have long argued that the Trump IRS plan breaks federal privacy rules by exploiting loopholes to use tax data for deportation. These groups warn that undocumented immigrants may now be too afraid to file taxes, undermining IRS efforts to collect revenue from all U.S. residents, regardless of legal status.
Alan Morrison, a lawyer for the plaintiffs, says his team is considering an appeal. He stressed that they’ll monitor the IRS and DHS closely to ensure the data is not used unlawfully.
Legal Debate Over Taxpayer Confidentiality
Federal law typically prevents the IRS from sharing private taxpayer information for civil matters like deportation. However, under the Trump IRS data-sharing plan, the Justice Department claims data requests will only target immigrants under criminal investigation for violating deportation orders.
Judge Friedrich agreed, writing:
“The Memorandum only allows sharing information for criminal investigations… The Court cannot assume that DHS intends to use the shared information to facilitate civil rather than criminal proceedings.”
Internal IRS Concerns Over the Trump Plan
Several career IRS officials refused to sign the agreement, citing legal risks. Still, the Trump administration implemented the plan in April 2025. These concerns highlight the ongoing tension between law enforcement goals and taxpayer privacy protections.
Immigrant Communities Fear Tax Filing Repercussions
The plan has caused fear in immigrant communities. For years, undocumented immigrants have used Individual Taxpayer Identification Numbers (ITINs) to file taxes without risk of exposure. Now, many worry that the IRS may be used as a tool for enforcement under the Trump IRS plan.
Conclusion: What’s Next for the Trump IRS Data-Sharing Plan?
This ruling does not mark the end of the legal battle. The plaintiffs may appeal the decision to the DC Circuit Court of Appeals. Meanwhile, immigration advocates and legal experts will be watching closely for any misuse of IRS data under this controversial policy.