IRS Shares Thousands of Tax Records with Department of Homeland Security

IRS–DHS tax-data sharing: the distinction immigrant filers need to know

The most important point is this: the IRS can sometimes confirm whether a person appears in IRS tax records, but it generally cannot disclose “return information” (like an updated address) to immigration enforcement unless a narrow legal exception applies.

That line matters because many immigrants file U.S. returns using an ITIN (Form W-7) or in mixed-status households. They rely on long-standing IRS confidentiality rules to feel safe filing accurately and on time. Those rules exist because voluntary compliance depends on trust.

Current as of Friday, February 13, 2026, a court filing made public this week describes an incident where the IRS improperly disclosed confidential tax information to the Department of Homeland Security (DHS), including ICE, affecting thousands of people.

At a high level, “return information” generally means data connected to a taxpayer’s identity and tax filing, such as name, address, filing status, and other information the IRS receives or creates in administering tax law. Even address data can be sensitive. It can reveal a person’s location and household ties.

This guide explains what happened, how the April 2025 data-sharing agreement worked, what the “disclosure error” involved, the legal fallout, key dates, and practical steps immigrant taxpayers can take now.

For background on noncitizen filing and residency rules, see IRS Publication 519 (U.S. Tax Guide for Aliens) at IRS Publication 519 (PDF) and the IRS International Taxpayers portal.

1) Overview of the data sharing and disclosure incident

A court filing disclosed on February 11, 2026 reports that the IRS improperly disclosed confidential tax information of thousands of immigrants to DHS/ICE. The filing describes a data-sharing workflow that began under an interagency agreement, then led to an additional release of address information for a subset of matched individuals.

Why this matters for immigrant taxpayers:

• Many filers with ITINs are not eligible for a Social Security number. They still have U.S. filing obligations.
• Many mixed-status families file a U.S. return every year, often using a paid preparer.
• If filers fear their tax records will be used for immigration enforcement, fewer people file. That hurts tax administration and families.

Confidentiality is not a “nice-to-have.” It is a cornerstone of federal tax administration. The main confidentiality statute is Internal Revenue Code section 6103, which restricts IRS disclosures of returns and return information.

2) The Data Sharing Agreement (April 2025)

In April 2025, the Treasury Department, the IRS, and DHS finalized an arrangement described as supporting immigration enforcement efforts. In reported practice, ICE submitted lists of individuals with identifiers such as names and addresses. The IRS then cross-checked those identifiers against IRS tax records.

Conceptually, list-based matching can be separated into two different actions:

1. Confirming presence in IRS records (a yes/no match signal), and
2. Disclosing additional return information (such as an updated address).

That distinction is central. A match confirmation can still be sensitive. But providing address information can change the risk profile completely, because it can help locate a person.

Just as important: an agreement between agencies does not automatically make every disclosure lawful. Disclosures still must comply with federal tax confidentiality rules, plus any court orders or injunctions that limit implementation.

3) The Disclosure Error (what reportedly went wrong)

The court filing describes a sequence like this:

• ICE sent a request list of individuals it sought to locate.
• The IRS performed a verification or match process against IRS tax records.
• For a subset of verified matches, the IRS mistakenly provided additional address information when ICE had incomplete or insufficient address data to identify the person with certainty.

The reported scale was large at the front end, then much smaller after IRS verification:

• ICE requested information on 1.28 million individuals.
• The IRS verified 47,289 individuals in its records.
• For less than 5% of those verified, the IRS mistakenly provided additional address information.

Even without other tax data, an address update can be highly revealing. It can point to a new residence, a new employer area, or family location. That is why immigrant filers are paying attention to “address data,” not only income data.

What is known versus unknown (based on what has been described publicly):

• Known: the request list was far larger than the verified match count.
• Known: address information was provided for a subset in error.
• Unknown for any individual: whether they were on the list, whether they were matched, exactly which fields were transmitted, and whether DHS used the data.

For your own protection, keep calm and document what you can control now. Keep copies of returns, ITIN documents, and any IRS letters.

⚠️ Warning: Do not assume you were affected because you have an ITIN. Also do not assume you were not affected because you file jointly. The only safe approach is careful recordkeeping.

4) Legal and political fallout

The April 2025 agreement prompted controversy and reported resignations of senior IRS officials, including acting IRS Commissioner Melanie Krause. Those events matter because they show internal disagreement about governance and confidentiality.

Courts also intervened. Federal judges reportedly blocked implementation of the agreement. One judge found the IRS had illegally disseminated tax data of some migrants during the summer, violating confidentiality law. Lawsuits by Public Citizen and immigrant advocacy groups challenge the arrangement.

In practice, an injunction usually means implementation is paused or limited. It can also impose handling rules, such as restricting further sharing, requiring monitoring, or limiting use.

DHS and ICE have publicly stated they would comply with federal law and injunctions. They also stated they would not inspect or use the return information obtained. Those statements can be tested in litigation. Courts can also require verification steps.

5) Key dates and milestones (and why timing matters)

A clean timeline helps you evaluate what may have happened and when:

• April 2025: Treasury/IRS/DHS finalize the data-sharing agreement.
  • Why it matters: it marks the start of the workflow that enabled matching.
• January 23, 2026: Treasury notified DHS of the disclosure error and requested help to prevent further disclosure and ensure “appropriate disposal” of the data.
  • Why it matters: it suggests the government identified an internal problem before it became public.
• February 11, 2026: A court filing disclosed the improper disclosure publicly.
  • Why it matters: public disclosure increases oversight and may affect remediation and court supervision.

Timing can affect record retention and remediation. It can also affect what a court orders next.

6) What this means for confidentiality and immigrant taxpayers (tax rules did not change)

Confidentiality protections exist to encourage full reporting. When trust falls, governments often see:

• fewer filings,
• more off-the-books work,
• more errors from fear-based decisions,
• less participation in legal credit programs.

Still, one critical point for tax year 2026 (returns filed in 2027) is that your filing obligations and credit eligibility rules are separate from immigration enforcement debates.

For example:

• Many noncitizens must file Form 1040 as U.S. tax residents if they meet the substantial presence test (see Pub. 519).
• Others file Form 1040-NR as nonresidents.
• ITIN applicants use Form W-7 and must follow IRS documentation rules.

“Remediation” can mean tighter controls, audit trails, data disposal, and court oversight. But there are limits to what individual taxpayers can force quickly.

7) What to watch next (and practical steps now)

Monitor developments that change real-world risk, not rumors:

• Court orders that expand, narrow, or extend injunctions.
• Requirements for data disposal, audits, or reporting to courts.
• Any revised interagency procedures governing IRS disclosures.

Sensible actions you can take now:

• Keep organized tax records for at least the normal IRS periods. Many taxpayers keep copies for at least 7 years as a practical habit.
• Use consistent identifying information across filings. Mismatches can trigger IRS notices.
• Protect your IRS transcripts and notices like financial records.
• For complex cases, use a credentialed preparer. That includes ITIN renewals, treaty positions, and foreign reporting.

If you have foreign accounts, keep your filing obligations separate from this news. These rules still apply:

FBAR is filed with FinCEN, not the IRS, but it is often prepared alongside your return. Form 8938 is filed with the IRS. See IRS forms and publications.

And keep deadlines straight for tax year 2026 (filed in 2027):

📅 Deadline Alert: If you file Form 4868 for your 2026 return, it extends paperwork time, not the time to pay. Interest can still apply on unpaid tax after April 15, 2027.

Common mistakes immigrant filers should avoid right now

1. Not filing because of fear
   • If you have a filing requirement, not filing can create IRS penalties and future immigration complications. Keep tax compliance separate.
2. Changing addresses in a panic
   • Use stable mailing practices. Consider a trusted address if you move frequently. Do not create inconsistencies across forms.
3. Mixing up tax residency and immigration status
   • A person can be a noncitizen and still be a U.S. tax resident under Pub. 519 rules.
4. Forgetting “secondary” filings
   • If required, file FBAR and Form 8938. Do not assume your return covers them.

You are “most at risk of confusion” if…

You are most at risk of confusion if you filed with an ITIN, live in a mixed-status household, moved recently, or have multiple names or spellings across documents.

You are more likely to need professional help if you changed visa status in 2026, have treaty questions (see IRS Publication 901 at IRS Publication 901), or have foreign accounts and entities.

You are least likely to benefit from rumors if you rely on social media claims about DHS access to all IRS tax records. Focus on court orders, IRS guidance, and your own compliance file.

Action items for tax year 2026 (filed in 2027): keep copies of filed returns and W-2/1099s, keep proof of ITIN documents and renewals, track foreign accounts for FBAR/Form 8938, and use IRS.gov forms and publications for updates.

⚠️ Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax situations vary based on individual circumstances. Consult a qualified tax professional or CPA for guidance specific to your situation.