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Appeals Court Blocks IRS Sharing of Taxpayer Addresses with ICE

9/9/2026, 10:58:35 PM

Court Blocks IRS-ICE Data Sharing

A three-judge panel of the D.C. Circuit unanimously affirmed a lower-court order that bars the Internal Revenue Service from providing taxpayer addresses to Immigration and Customs Enforcement. The judges found that the administration-crafted procedure violated the federal tax-confidentiality statute enacted after the Watergate scandal. The panel noted that ICE had submitted “either incomplete or insufficiently populated” requests for more than 1.2 million records, yet the IRS disclosed roughly 47,000 taxpayer addresses.

Background and Legal Context

Congress passed a 1976 prohibition—codified at section 6103—requiring any federal agency to meet stringent conditions before receiving tax-return information. The Trump administration sought to bypass those safeguards, arguing that the data would aid immigration enforcement. Plaintiffs—including the Center for Taxpayer Rights, the Main Street Alliance, and two labor unions—were represented by the advocacy group Democracy Forward. The court warned that violations of the statute carry “steep civil and criminal consequences” for willful disclosures.

Official Statements & Responses

Skye Perryman, president and CEO of Democracy Forward, hailed the decision, saying the administration’s data-sharing policies had violated the privacy rights of millions of Americans.

Criticism & Opposition

Conservative attorney William Shipley condemned the language used in the opinion, calling it an “embarrassment” and accusing the judges of “abuse of power.” Judicial Watch president Tom Fitton described the three Obama-appointed judges as “anti-Trump” and warned of a “judicial integrity crisis.” D.C. attorney Joshua Prince and other commentators on X echoed concerns that the slang-laden opinion undermines legal decorum.

Verbatim Quotes

  • “That argument is ‘weak sauce’ where the district court has permitted the IRS to file any necessary notifications ‘under seal,’ thereby shielding any criminal investigative activity from disclosure,” — D.C. Circuit Judge Cornelia
  • “Three anti-Trump Obama judges abuse power to impair basic immigration law enforcement. We have a judicial integrity crisis in the federal courts,” — Judicial Watch
  • “The Trump-Vance administration’s dangerous data sharing policies have resulted in the violation of the privacy rights of millions of Americans, and we are pleased the court has again acted to stop this unlawful behavior,” — Skye Perryman, president and CEO