The U.S. Court of Appeals for the D.C. Circuit issued a ruling this week allowing the Internal Revenue Service (IRS) to share certain taxpayer information with the Department of Homeland Security (DHS) for use in immigration enforcement investigations.
In its decision, the court concluded that federal law does not create an absolute prohibition on sharing tax return information when it is requested for authorized law enforcement purposes. The case centered on Section 6103 of the Internal Revenue Code, which governs the confidentiality of tax records. Advocacy organizations had argued that the statute broadly protects tax data from being used in immigration enforcement actions.
The appeals court disagreed with that interpretation, finding that the law includes exceptions permitting disclosures connected to legitimate law enforcement activities. The ruling reverses a lower court decision that had previously blocked coordination between the IRS and DHS in this context.
The case also touches on the use of Individual Taxpayer Identification Numbers (ITINs), which allow individuals who are not eligible for Social Security numbers to file tax returns. Millions of people, including some without legal work authorization, use ITINs to comply with federal tax obligations. Supporters of the ruling say federal agencies should be able to share information where permitted by law, while critics warn that expanded data sharing could discourage tax compliance.
The Department of Homeland Security has not yet outlined how it plans to apply the court’s decision, and the IRS has not released details about any new procedures. Legal observers note that additional challenges could follow, and the issue may ultimately be reviewed by the Supreme Court.