Internal Revenue Service bosses broke federal law by handing over the private addresses of more than 42,000 taxpayers to immigration agents.
US District Judge Colleen Kollar-Kotelly didn't mince her words on Thursday. She found that the agency basically ignored the 'fortress' of privacy laws to help ICE track people down. Honestly, the scale of it is mental. We are talking about 42,695 specific violations where the taxman just ignored the rules.
The Rule Of Law Ignored
The ruling centres on Section 6103. That is the bit of the tax code that is meant to keep your files secret. It turns out the IRS had been helping the Department of Homeland Security via a dodgy data-sharing deal. Dottie Romo, the agency's own risk officer, filed a declaration that basically blew the lid off the whole thing. Out of 1.28 million requests from ICE, the tax office coughed up data on 47,000 people.
But here is the kicker. In nearly 43,000 of those cases, they gave away way more than they were allowed to. The judge was blunt. She said the IRS failed to check if the requests were even legal. In her words, the requests from ICE were 'patently deficient'. They were basically just asking and the IRS was saying yes.
A Resignation And A Row
This whole mess started with a deal signed last April by Treasury Secretary Scott Bessent and Homeland Security chief Kristi Noem. It was a play to use tax records to find people the government wanted to deport. It was so controversial that the acting IRS commissioner actually quit over it just after the ink dried. You can see why. If people think the taxman is a snitch, they stop filing returns.
Nina Olson, who runs the Centre for Taxpayer Rights, has been screaming about this for months. She says the ruling proves the agency has an 'unlawful policy'. And she is right. The law says tax data is for taxes, not for hunting immigrants.
Why Privacy Matters For Revenue
The fallout from this goes beyond just a few court filings. If the public loses faith in the confidentiality of their returns, the entire voluntary tax system starts to crumble. Experts have warned for years that using the IRS as an arm of immigration enforcement is a recipe for disaster. It turns out they were right to worry. When people stop trusting the taxman, the Treasury ends up with a massive hole in its pocket.
The thing is, Section 6103 exists for a reason. It ensures that everyone, regardless of their status, can pay what they owe without fear. By turning tax forms into tracking devices, the government has risked the stability of its own revenue stream. It is a massive gamble that has clearly backfired in the most public way possible.
A Blow To Government Trust
This decision adds a massive amount of weight to the lawsuits still working their way through the system. While the government claims the sharing was for 'national security' or 'enforcement efficiency', the judge has essentially called foul. She made it clear that efficiency does not overrule the law of the land. It is a reminder that even the biggest agencies have to play by the rules.
The Treasury hasn't said a word since the ruling dropped. Neither has the IRS. They are likely huddled with lawyers trying to figure out how to explain away 42,000 legal breaches. It is a massive blow to the administration, and a rare win for those who think privacy still matters.
What Happens Next For Taxpayers
The government is already scrambling to appeal. They want this ruling gone. A separate court of appeals recently said they wouldn't stop the whole programme yet, but that was before this explosive finding. For now, there are two injunctions in place. They effectively freeze the data. ICE can't use what they have already grabbed, and the IRS can't send any more bulk files.
The case continues in the US Court of Appeals.
