Court Blocks IRS Data Sharing: Privacy Upheld

A U.S. appeals court ruled against an IRS policy that allowed taxpayer address sharing with immigration authorities, citing federal law violations. The practice, part of broader immigration enforcement efforts, disclosed thousands of records to ICE. Privacy advocates, including the Center for Taxpayer Rights, welcomed the decision against the Trump-era policy.

A U.S. appeals court has upheld an injunction against an Internal Revenue Service policy allowing the sharing of taxpayer addresses with immigration authorities. The court ruled that the IRS's practice under the Trump administration infringed federal law by disclosing around 47,000 taxpayer addresses to U.S. Immigration and Customs Enforcement (ICE).

The IRS did not comment on the decision. A Homeland Security spokesperson expressed disagreement with the ruling, stating the intent to use all lawful means to locate and deport undocumented immigrants.

The court's decision is a victory for privacy advocates, including the Center for Taxpayer Rights, who argued the IRS policy was illegal. The case underscores a broader post-Watergate legal framework barring inappropriate data sharing between government agencies. Circuit Judge Cornelia Pillard highlighted significant legal oversights in the IRS's policy implementation.