Judge Blocks IRS From Sharing Taxpayer Data With ICE

A second federal judge reportedly has blocked the Trump administration from using taxpayer address information to help Immigration and Customs Enforcement track down undocumented immigrants.

U.S. District Judge Indira Talwani on Thursday ordered the IRS to stop sharing residential addresses with ICE while the court reviews the case, Politico reported.

Talwani also barred ICE from using any taxpayer information it has already received under the agreement.

Talwani, a Boston-based appointee of then-President Barack Obama, said the information-sharing arrangement may violate federal taxpayer privacy laws — and warned it could create a chilling effect that discourages immigrants from filing tax returns at all.

The ruling targets a deal made last year between the Treasury Department and the Department of Homeland Security, the parent agencies of the IRS and ICE, respectively.

Under that agreement, Treasury Secretary Scott Bessent, who is also serving as the IRS acting commissioner, and DHS Secretary Kristi Noem signed off on a plan to provide ICE with address information on tens of thousands of taxpayers.

Politico reported that on Aug. 7, 2025, the IRS disclosed address information for roughly 47,000 taxpayers to ICE.

ICE has claimed it has not used the information for deportations.

But Talwani said the risks go beyond immigration enforcement.

In her ruling, she raised concerns about mistaken identity, including the case of a naturalized U.S. citizen in St. Paul, Minnesota, who was reportedly taken from his home after ICE agents allegedly mistook him for a sex offender linked to the address.

Talwani also highlighted the practical reality of immigrant communities, noting that many people share common surnames and live in multifamily homes or apartment complexes — increasing the risk of wrongful arrests.

The Thursday order follows a similar ruling issued in November by U.S. District Judge Colleen Kollar-Kotelly, a Washington-based appointee of then-President Bill Clinton.

In that case, Politico reported at the time that Kollar-Kotelly found the IRS-ICE agreement likely violated a strict taxpayer confidentiality law that limits disclosure of return information except in certain nontax criminal investigations.

She also restricted Bessent from disclosing taxpayer information to DHS unless the recipient is working on a legitimate non-tax criminal probe.

The Trump administration has appealed the November ruling, but the appeal has not lifted the order.

The legal battle highlights a major tension for the administration: Republicans have long argued for stronger border enforcement and accountability but also for protecting Americans from federal overreach, surveillance, and abuse of power.

• Federal Judge Permits Medicaid Data Sharing With ICE
• ICE Says IRS Data Was Not Used for Deportations