Receita Federal of Estados Unidos (IRS) improperly disclosed confidential tax information of thousands of taxpayers to Departamento of Segurança Interna (DHS). The error occurred during the implementation of a memorandum of understanding signed in April 2025 between DHS and Departamento of Tesouro. Esse agreement allowed immigration agents to request names and addresses of individuals suspected of residing in the country without legal status.
The incident recently came to light through a court filing filed by IRS Risk and Control Director Dottie Romo. Ela reported that the agency verified about 47,000 of the 1.28 million names requested by DHS. In less than 5% of these cases, additional personal data was shared inappropriately.
The disclosure potentially violates federal laws that protect taxpayer confidentiality. Autoridades work with other agencies to correct the problem and prevent further failures.
Judicial declaration details
Dottie Romo filed the statement in a court case challenging the agreement between the agencies. Ela explained that the IRS was able to confirm the identity of only a fraction of the names sent by DHS. The tax agency provided extra information only in cases where there was a partial match.
The error affected taxpayers who pay taxes regularly, many of them immigrants without full documentation. Esses individuals use individual tax identification numbers (ITIN) to comply with tax obligations. The law has guaranteed strict protection for this data for decades.
Origin of the memorandum of understanding
The memorandum was signed in April 2025 to intensify immigration enforcement across all federal agencies. DHS was seeking to access addresses to locate people with final deportation orders. The agreement represented a shift from previous data protection practices.
Prior to this initiative, the IRS maintained strict barriers to sharing tax information. Federal law allows exceptions only in specific criminal investigations. The new arrangement expanded access for immigration enforcement purposes.
Main numbers involved
DHS sent a list of 1.28 million names to the IRS over the months of implementation. The tax agency processed these requests in batches. Apenas 47 thousand names received initial positive verification.
- Less than 5% of those verified resulted in additional addresses being shared.
- The error occurred mainly in cases of incomplete identifier matching.
- Thousands of confidential records were inappropriately exposed.
- The problem was only recently identified during an internal review.
This data highlights the scale of the request and the margin of error in the process.
Reactions of Departamento of Segurança Interna
A DHS spokesperson said information sharing between federal agencies is necessary to identify threats. The statement emphasized the importance of locating violent criminals and undocumented people. The department argues that the agreement corrects old practices that limited cooperation.
DHS officials highlighted that the objective includes removing individuals from improper voter registrations. Eles argue that the use of public benefits by foreigners without authorization should be monitored. The position reinforces the priority given to national and public security.
Criticisms of advocacy organizations
Immigrant rights groups called the error a serious violation of privacy. Centro to Democracia and Tecnologia pointed out that improper sharing exposes innocent people to risks. Tom Bowman, the entity’s consultant, highlighted that errors are inevitable in systems of this nature.
National Immigration Forum criticized the drastic change in IRS policy. The organization recalled that tax information is confidential by law. Elas can only be shared in the restricted circumstances of criminal investigations.
High-ranking IRS resignations
Several senior IRS officials left their positions in protest of the memo. Acting Commissioner Melanie Krause resigned shortly after the agreement was signed. Diretores privacy concerns like Kathleen Walters and Teresa Hunter also left due to legal concerns.
These departures occurred at the beginning of 2025, when the agreement was formalized. The former employees argued that the memo violated decades-old protections. The stampede drew attention to internal tensions at the tax agency.
Recent court decisions
Federal judges have issued orders blocking parts of the agreement at different times. A November 2025 ruling prevented the IRS from continuing the sharing. Outra recent ruling reinforced the ban until the case is fully analyzed.
Courts cited violations of taxpayer confidentiality law. Eles highlighted risks of misidentification of American citizens. The injunctions remain in effect while the case progresses.
Historical protection of tax data
American law has strictly protected tax information since the last century. Contribuintes receive guarantees that data will not be used for other purposes. Imigrantes without legal status pay billions in taxes annually through ITINs.
These numbers allow compliance with obligations without immigration exposure. Milhões of returns are processed this way every year. Confidentiality encourages voluntary adherence to the tax system.
The IRS has been processing returns from people without a number of Seguro Social for more than 25 years. The ITIN program was created precisely to include these taxpayers. Autoridades have always emphasized that data remains protected regardless of migration status.
Consequences of the identified error
The recent identification of the problem led to internal reviews at the IRS. The agency coordinates with DHS to contain damage. Medidas corrections include notification of those affected when possible.
The incident reinforces debates about limits on sharing between agencies. Especialistas point out that legal barriers exist to prevent abuse. The current situation demonstrates practical risks in implementing broad agreements.
Corrective measures in progress
Teams from both agencies analyze improperly shared records. The objective is to revoke inappropriate access and strengthen protocols. The IRS implements additional checks on future requests.
Despite court injunctions, DHS maintains that interagency cooperation is essential. Autoridades federal authorities seek solutions that respect court decisions. The case remains under monitoring by district courts.
Position of privacy experts
Data analysts highlight that errors in large databases are common without rigorous filters. The volume of 1.28 million requests increased the chances of failures. Sistemas automated machines do not always distinguish partial matches correctly.
Privacy organizations call for definitive suspension of the agreement. Elas argue that risks outweigh benefits in enforcement. Taxpayer protection must prevail over immigration objectives.
The error exposed vulnerabilities in identity verification processes. Bases of federal data is not always perfectly aligned. Isso results in incorrect matches that affect innocent individuals.
Continuity of the federal debate
The incident reignites discussions at Congresso about tax privacy. Parlamentares from different parties expressed concern about what happened. Audiências can be checked to evaluate the original agreement.
Meanwhile, affected taxpayers are seeking information about data exposure. The IRS maintains channels for confidentiality inquiries. The agency reinforces its commitment to established legal protections.
