Can ICE Use Other Agencies’ Personal Data to Enforce Immigration Laws?

U.S. Immigration and Customs Enforcement (ICE) now pulls personal data from other federal agencies — including the Internal Revenue Service (IRS) — to carry out removals, under a court‑approved information deal and broader data pipelines expanded in 2024–2025. The new ICE‑IRS Data‑Sharing Agreement, effective May 2025, lets ICE seek taxpayer details for certain cases, marking a sharp break from decades of IRS confidentiality practice and fueling privacy and legal fights nationwide.

What the ICE‑IRS agreement does

A federal district court in May 2025 approved a Memorandum of Understanding (MOU) that allows ICE to ask the IRS for taxpayer information — such as names, addresses, and tax return periods — when a person has a final order of removal or is tied to a federal criminal probe related to immigration enforcement.

It is the first formal pathway for the IRS to hand taxpayer data to ICE under the tax code’s Section 6103 framework, which has long limited disclosure. Court filings show the possible reach could include as many as 7 million taxpayers, though parts of the agreement remain redacted and are being challenged.

Under the MOU:

• ICE must cite the federal criminal statute at issue and explain why the data is needed.
• The IRS checks its records and, if the request matches its criteria, releases related information.

According to analysis by VisaVerge.com, the agreement has already chilled tax behavior among some immigrant households, with reports of fewer filings as fear spreads that tax data could lead to immigration enforcement at the door.

Public and internal pushback has been sharp. Top IRS officials resigned in the wake of the deal, including acting IRS Commissioner Melanie Krause, who stepped down while raising privacy alarms. Appeals against the agreement were filed as recently as May 2025, and court outcomes could shape how far ICE can go in using tax records in the months ahead.

ICE’s broader data pipelines

This is not the only channel ICE now relies on. The agency’s data reach has widened under a Trump administration drive to lift deportations to a one‑million‑per‑year target. ICE taps information from:

• Federal agencies: FBI, ATF, DEA, U.S. Postal Service
• Commercial brokers: private data brokers supplying consumer and location data
• Analytics platforms: including Palantir’s Immigration Lifecycle Operating System (ImmigrationOS)

These systems combine government and private data — such as credit, utilities, motor vehicle, and airline passenger records — affecting not only noncitizens but also many citizens whose data sits in the same systems.

Health and education data are also part of the new picture. In mid‑2025, a CMS‑DHS arrangement enabled sharing of some Medicaid information (including California’s Medi‑Cal) with DHS/ICE, sparking concern that health records could be pulled into removal work. Student education records are generally protected by FERPA and need consent, but there are exceptions — including lawful court subpoenas — which has raised fresh questions on campuses about when and how student data could be disclosed in an enforcement context.

Privacy concerns and legal pushback

Privacy advocates argue these steps erode trust in core institutions — the tax agency, public health programs, and schools — and will drive people underground. That fear appears to be shaping real choices:

• VisaVerge.com reports reduced tax compliance among undocumented filers, which can hurt families and cut public revenue.
• Community groups say households now second‑guess filing returns, correcting past filings, or updating addresses, worried that routine tax actions will trigger ICE attention.

ICE points to its Privacy Unit (within the Office of Information Governance and Privacy) as a safeguard. The unit is tasked with setting rules, training staff, and auditing data use for lawful purposes. Critics respond that the new data deals cut against those goals by widening collection and sharing far beyond past norms.

They warn that linking once‑separate datasets increases the risk of errors and overreach, exposing people to arrest or removal based on stale or mismatched records.

Ongoing legal challenges

Legal battles are active and central to the outcome:

• Plaintiffs question whether the IRS can lawfully share such data for immigration enforcement and whether the court‑approved process meets the tax code’s strict limits.
• They argue the deal will chill tax filing by people the tax system depends on, including filers who use Individual Taxpayer Identification Numbers (ITINs), harming compliance and trust.
• Government lawyers counter that the agreement is tailored, requires case‑specific justifications, and targets people with final orders or those linked to federal crimes.

The fight reflects a broader turn since 9/11: agencies have been trimming walls around data. But the steps taken in 2024–2025 mark a new scale and formality. Supporters say stronger data use helps remove people with criminal histories and enforce court‑ordered removals. Opponents warn the dragnet will reach many with no criminal record, including long‑settled families, and will spread fear across immigrant neighborhoods in the United States.

Key takeaway: The agreement amplifies government data linkages, intensifying privacy concerns and prompting legal and political challenges that could reshape how agencies share personal information.

What this means for families and tax filers

For people with uncertain status — and their U.S. citizen relatives — the stakes are personal. ICE’s expanded reach means details in one area of life, like taxes or health coverage, may surface in an immigration file later. That raises risks for households that have final removal orders, past no‑shows in court, or pending criminal probes.

It also complicates basic public messages: file your taxes, go to the doctor, send your child to school. When government parts share more data, those acts can feel risky.

Practical steps families are taking now

1. Keep filing taxes on time. Stopping can trigger other problems, including penalties and issues with credit or future benefits.
2. Work with trusted tax preparers and community nonprofits. Ask about privacy, record‑keeping, and how to avoid scams.
3. Keep copies of past tax filings, notices, and proof of mailing or e‑filing. Store them in a safe place.
4. If you think you may have a final removal order, talk to a licensed attorney or accredited representative before traveling, moving, or updating records.
5. If you receive a subpoena or warrant, read it carefully and seek legal help. Schools and clinics may have policies explaining what they can share and when.
6. Stay alert for changes. Court rulings and agency policies could narrow or widen what gets shared next.

Community and economic impacts

The community impact runs deeper than paperwork:

• In mixed‑status homes, U.S. citizen children depend on stable income and health care tied to a parent’s work and tax filings.
• If a parent stops filing or slips into informal work to avoid a digital trail, the family can lose tax credits, refunds, and access to basic services.
• City budgets also feel the hit if large groups step away from public systems out of fear.

Where change could come from

As policies evolve, immigrants and allies will watch two arenas closely:

• Courts: Appeals could curb or reshape the ICE‑IRS Data‑Sharing Agreement.
• Congress and agencies: Lawmakers may propose new guardrails for data sharing across tax, health, and education systems, though none had passed as of August 2025.

For official information on ICE privacy policies and contacts, visit the ICE Office of Information Governance and Privacy at https://www.ice.gov/privacy.