DC Circuit Allows IRS-DHS Taxpayer Data Sharing for Immigration

A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit ruled on Tuesday that the Internal Revenue Service may share certain taxpayer information with the Department of Homeland Security to aid immigration enforcement efforts, rejecting a request from immigrant rights groups to block the practice. The decision, issued in Washington, D.C., allows the agencies to continue cross-verifying names and addresses of individuals suspected of being in the country illegally against tax records, marking a procedural victory for the Trump administration's immigration policies.

The ruling stems from a lawsuit filed last year by nonprofits, including Centro de Trabajadores Unidos and Somos Un Pueblo Unido, challenging a memorandum of understanding signed in April 2025 between Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem. Under the agreement, U.S. Immigration and Customs Enforcement has submitted approximately 1.28 million names and addresses for verification as part of criminal investigations related to immigration violations. The groups sought a preliminary injunction, arguing that the data-sharing violates Section 6103 of the...