The IRS is under fire after news broke that the agency is now sharing immigrant tax data with Immigration and Customs Enforcement (ICE) – a move that’s already triggered political backlash, legal questions, and a high-profile resignation.
Acting IRS chief Melanie Krause has stepped down from her position following the controversial policy shift, which critics say undermines the confidentiality of the U.S. tax system and targets vulnerable immigrant communities.
According to internal documents and whistleblower reports, the IRS entered into an immigrant data-sharing agreement with ICE aimed at supporting the agency’s deportation efforts. This reportedly includes providing taxpayer identification details from immigrants – even those who are legally filing taxes with Individual Taxpayer Identification Numbers (ITINs).
“This is a betrayal of trust,” said a former IRS official who spoke to us under condition of anonymity. “Millions of immigrants comply with tax laws, believing their information is safe from immigration enforcement. That firewall is gone.”
The program came to light this week and was met with immediate condemnation from civil rights groups and immigration attorneys, who argue it will not only harm families but also discourage compliance with tax obligations.
Melanie Krause’s resignation came swiftly after the news broke. In a letter obtained by USA TODAY, she said: “The integrity of our tax system relies on the promise that taxpayer data will be used only to administer tax laws. I can’t in good conscience lead an agency that breaks that promise.”
Proponents of the new policy, including Secretary of State Marco Rubio, insist the collaboration with ICE is about national security. “We’re talking about individuals who may be using fraudulent identities or involved in broader criminal activities,” Rubio said during a press conference, calling the students and workers affected “lunatics.”
Legal experts are already warning the IRS could face challenges in court. The National Immigration Project has indicated it is exploring legal action on behalf of immigrants whose data was shared.
“This isn’t just about privacy. It’s about undermining the very system we rely on to fund our government,” said immigration attorney Ana Delgado. “If immigrants stop filing taxes out of fear, it could have long-term fiscal impacts.”
Universities, many of which host large populations of international students, are reportedly scrambling to provide legal and logistical support for those caught up in the enforcement dragnet. Several institutions have confirmed that students whose tax records were flagged have since had their student visas revoked.
As the backlash builds, lawmakers from both parties are demanding oversight hearings. Senator Alex Padilla (D-CA) has called for an immediate investigation, stating: “Weaponizing tax data for deportation purposes is not only dangerous, it’s un-American.”
The IRS has yet to publicly comment on Krause’s resignation or confirm the scope of its agreement with ICE. But with legal challenges looming and trust in the agency on the line, this story is far from over.
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