A federal judge ruled Friday that the IRS likely violated federal law when it agreed to share confidential taxpayer information with U.S. Immigration and Customs Enforcement, ordering the practice to stop immediately. Judge Colleen Kollar-Kotelly said the agency’s address-sharing policy was “arbitrary and capricious,” noting the IRS failed to acknowledge its departure from long-standing confidentiality rules or explain the shift. ICE had initially requested data on more than 7 million taxpayers before narrowing the list to 1.28 million “immigrant taxpayers,” claiming they were all under criminal investigation for failing to leave the U.S. after deportation orders. At least 47,000 records were ultimately shared, despite the judge’s finding that ICE offered dubious justification, including claiming one individual was overseeing all 1.28 million investigations.
The Center for Taxpayer Rights sued, arguing its members’ confidential data may have been shared, and the judge agreed the organization likely suffered harm. The ruling adds to a growing list of contentious immigration-related decisions. Judge Kollar-Kotelly said the IRS violated the Administrative Procedure Act by failing to provide a reasoned explanation for changing its policy and by accepting ICE’s broad claims without sufficient evidence. Both the IRS and ICE were asked for comment on the ruling.
In a separate case, U.S. District Judge Jeffrey Cummings ruled in favor of attorneys from the National Immigrant Justice Center and the ACLU, ordering that 615 detainees arrested during “Operation Midway Blitz” must be granted bond. Critics argue the ruling could endanger public safety, with DHS spokesperson Tricia McLaughlin warning that it “puts the lives of Americans at risk.”