Federal Judge Blocks ICE From Using IRS Taxpayer Data
•February 16, 2026
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Why It Matters
The injunction curtails a major data pipeline between the IRS and ICE, limiting enforcement tools that could affect immigration prosecutions and the government’s ability to verify taxpayers; it also raises broader privacy and compliance implications for how federal agencies share sensitive taxpayer information.
Summary
A federal judge has barred U.S. Immigration and Customs Enforcement from using IRS taxpayer data under a memorandum of understanding that had allowed cross‑checking taxpayer information for immigration enforcement. The ruling follows a November decision that stopped the IRS from sharing taxpayer addresses and stems from a summer request in which ICE sought records on roughly 1.3 million taxpayers and obtained about 450,000 matches. Plaintiffs argued the practice violated Section 6103 privacy protections and risked deterring noncitizens from filing taxes—potentially imperiling tens of billions in revenue. This is at least the second court rebuke of the data‑sharing arrangement amid growing legal scrutiny of IRS‑ICE cooperation.
Original Description
U.S. Immigration and Customs Enforcement can no longer use taxpayer information provided by the IRS after a federal judge ruled that the Department of Homeland Security policy may “significantly raise the risk of misidentification of taxpayers.” https://fedscoop.com/judge-blocks-irs-ice-data-sharing-agreement/
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