Lawsuit Seeking to Bar IRS from Sharing Taxpayer Information Expands, Adding DHS, ICE as Defendants

New plaintiffs join complaint seeking to stop IRS from sharing confidential taxpayer information with ICE

Contact: Patrick Davis, pdavis@citizen.org

WASHINGTON, D.C. — In a lawsuit brought to stop the Treasury Secretary Scott Bessent, the Internal Revenue Service (IRS), and Acting IRS Commissioner Melanie Krauss from disclosing tax return information to immigration enforcement authorities, Centro de Trabajadores Unidos and Immigrant Solidarity Dupage, represented by Public Citizen Litigation Group, Alan Morrison, and Raise the Floor Alliance, today added the Secretary of Homeland Security Kriti Noem, the Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE), and Acting ICE Director Todd Lyons as a defendants.

The amendment comes after recent reports that the Internal Revenue Service (IRS) is nearing an agreement with Immigration and Customs Enforcement (ICE) that would allow immigration officials access to legally protected taxpayer information. DHS may not lawfully inspect or use taxpayer information as part of an effort to enforce immigration law.

Inclusive Action for the City and Somos Un Pueblo Unido have also been added as plaintiffs.

“The secret efforts by DHS and ICE to obtain confidential taxpayer data threatens to usurp Congress’s authority to decide when and on what terms confidential IRS information can be used by other agencies.,” said Nandan Joshi, attorney with Public Citizen Litigation Group and co-counsel for the plaintiffs. “The protections that the law affords to all taxpayers do not bend to suit the agenda of a new administration..”

For months, the Trump administration has indicated that it wants to access tax data to support its mass deportation agenda. This lawsuit seeks to ensure that the IRS protects taxpayer privacy, as the law requires.

“Despite clear signals that its plans are illegal, Trump’s IRS is barreling ahead with a dangerous scheme to expose taxpayer data as part of its brutal war on immigrants,” says Sophia Zaman, executive director of Raise the Floor Alliance. “This is an unprecedented and reckless betrayal of trust that threatens the foundations of our tax system and will cost the government revenue in an already weak economy. We will persevere in court and in our communities to stop this unlawful overreach and protect the rights of all taxpayers, regardless of how they file.”

Like other workers, undocumented workers are required to pay income taxes. By law, the IRS is required to treat their tax records like every other taxpayer’s: as private and confidential, unless disclosure is specifically allowed by law. No law permits disclosure of tax records for immigration enforcement.

“We’re proud to stand with our partners across the country to defend the rights of immigrant workers and small business owners,” said Rudy Espinoza, chief executive officer at Inclusive Action for the City. “The Administration’s misguided and reckless attacks on the integrity of our nation’s tax systems will devastate our communities and our economy, undermine entrepreneurship, hemorrhage businesses, and destroy lives.”

The amended complaint and other documents from the case can be found here. For additional information on the case, or to request an interview with the litigation team or our plaintiffs, contact Patrick Davis, pdavis@citizen.org.