Judge weighs pausing IRS deal with DHS for migrant data sharing – Washington Examiner
A federal judge in Washington, U.S. District Judge Dabney Friedrich, is considering whether to pause a controversial data-sharing agreement between teh IRS and the Department of Homeland Security (DHS) that allows immigration authorities to access taxpayer details.During a recent hearing, advocacy groups representing undocumented immigrants argued that the agreement violates federal tax confidentiality laws and could discourage undocumented individuals from filing taxes. Judge Friedrich appeared skeptical of the plaintiffs’ claims, stating they had not demonstrated an imminent risk of harm since the agreement has yet to result in information sharing. The plaintiffs worry that the agreement, signed by Treasury Secretary Scott Bessent and DHS Secretary Kristi Noem, could aid in deportation efforts against immigrants who have final deportation orders or are under criminal inquiry. The judge did not make a ruling during the hearing but indicated she would decide soon on whether to block the arrangement while the case proceeds. The agreement has already led to resignations within the IRS from officials concerned about taxpayer privacy and voluntary compliance among immigrant communities.
Judge weighs pausing IRS deal with DHS for migrant data sharing
A federal judge in Washington appeared doubtful Tuesday that immigrant advocacy groups had made a strong enough case to justify halting a new Trump administration plan that will allow immigration authorities to access taxpayer information from the IRS.
At a hearing before U.S. District Judge Dabney Friedrich, the plaintiffs, two Illinois-based groups representing undocumented immigrants, urged the court to issue a preliminary injunction blocking a data-sharing agreement between the IRS and the Department of Homeland Security. The agreement, signed last month by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, would allow DHS to request information from the IRS about immigrants who have final deportation orders or are under criminal investigation.
But Friedrich, an appointee of President Donald Trump who has already declined to issue a temporary hold on the plan, repeatedly questioned whether the undocumented plaintiffs had shown an imminent risk of harm, noting that no information has been exchanged yet under the agreement.
“So long as a final order of removal was issued 90 days ago it’s fair game … under this order,” Friedrich said, referencing the memorandum of understanding submitted to the court explaining who can and cannot be targeted for data sharing.
She also noted limitations of the plan mean the planintiffs’ concerns may not come to fruition, affirming that “simply being in the United States illegally is not enough to make a request … or knowledge that they reentered the U.S. illegally. As I read it, the overstay of a removal order is the lowest bar.”
The plaintiffs, Centro de Trabajadores Unidos and Immigrant Solidarity DuPage, argue the policy violates longstanding federal tax confidentiality laws and would have a chilling effect on undocumented immigrants who file taxes using individual taxpayer identification numbers (ITINs). More than 5.8 million ITINs were active as of 2022, and immigrants without legal status paid over $89 billion in taxes in 2023, according to estimates cited in court filings.
A Justice Department lawyer at one point cited one of Friedrich’s prior comments — the judge had warned that plaintiffs “cannot presume that the government is poised to violate the law” — to argue against plaintiffs’ request for an injunction.
“And I’m not saying that you’re going to be poised to violate the law,” the judge responded. “Information is being shared between the two agencies, and arrests go up, and a plausible inference that information is being shared in assisting agents’ findings … it’s sort of not beyond review.”
“It can’t be supervised in any way,” she added.
The controversy has already triggered internal fallout at the IRS. At least two senior IRS officials resigned in recent weeks in protest of the agreement, citing concerns that the policy breaks with the agency’s commitment to taxpayer privacy and risks undermining voluntary compliance, especially among immigrant communities.
Friedrich’s handling of the case comes amid a string of rulings that demonstrate both deference and restraint when weighing Trump administration policies. Last week, she declined to block immigration enforcement operations in houses of worship, finding that religious groups challenging the policy had not shown direct targeting or measurable harm.
IRS CHIEF MELANIE KRAUSE RESIGNS AFTER AGENCY AGREES TO HAND OVER IMMIGRANTS’ DATA TO ICE
Yet earlier this year, she ruled against the Justice Department in a case involving the scope of Trump’s Jan. 6 pardons, holding that the clemency did not apply to unrelated crimes discovered during follow-up investigations.
Friedrich did not issue a decision Tuesday but said she would rule soon on whether to temporarily block the data-sharing arrangement as litigation proceeds.
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