IRS shared the personal data of thousands of American taxpayers with DHS: Report
The ICE crackdown in Minnesota was bad enough, but it was recently revealed that the IRS had illegally provided taxpayer information to the Department of Homeland Security. It is unclear how long this has been going on, but the matter has only just come to light. The American legal system has a big job on its hands in the coming days, and steps are already being taken. The IRS has been blocked by a judge from sharing information with the DHS.
A report in the Washington Post states that the DHS had asked for the details of 1.2 million individuals, and the IRS supplied them with 47,000. That number would have gone up had the recent court order not been passed. The taxation department confirmed the Post’s reporting in a court filing on Wednesday. However, it is unclear how long this has been going on.
Dottie Romo, the tax agency’s chief risk and control officer, did not say when the IRS learned of applicants information being leaked to the DHS in her declaration, but that the agency had notified the DHS on January 23 that it would be taking steps to “prevent the disclosure or dissemination, and to ensure appropriate disposal, of any data provided to ICE by IRS based on incomplete or insufficient address information.” The problem is that it might already be too late.
There is a reason why the IRS is scrambling for a response with officials from the Treasury Department, Justice Department, and Department of Homeland Security. This is a clear breach of federal law, which mandates strict protection of taxpayer information, even from the government. For several years, undocumented immigrants have paid taxes with assurances from the federal government that immigration agents would not target them.
Clearly, that has not been the case, and the consequences might be dire. Those affected by this data leak may be entitled to financial compensation. The government officials involved could face serious civil and criminal penalties. President Donald Trump knows a thing or two about how the IRS maintains personal data, as he recently sued the IRS for $10 million for leaking his personal data.
Charles Littlejohn, an IRS contractor, pleaded guilty in 2023 for leaking the tax return details of the President and was sent to prison for five years. This breach involves 47,000 people and has been happening right under Trump’s nose, perhaps even with his full knowledge. Some in the DHS, however, continue to maintain that they are innocent and have not been involved in any wrongdoing.
“Information sharing across agencies is essential to identify who is in our country, including violent criminals, determine what public safety and terror threats may exist so we can neutralize them, scrub these individuals from voter rolls, and identify what public benefits these aliens are using at taxpayer expense,” a spokesperson said. The DHS is cracking down not only on the IRS for the details of immigrants. Recently, details of those receiving SNAP benefits from the government were also said to have been provided to ICE, which may deny thousands of those in need of assistance, only based on their immigrant status.
More on Market Realist:
IRS has introduced a free tax filing program this year — here are the key details
IRS watchdog warns American taxpayers may face 'greater challenges' amid recent issues
IRS chief predicts a 94% boost in tax refunds for middle-class Americans in 2026
