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IRS Barred From Sharing Tax Data With ICE

In a win for immigrants’ rights advocates, a federal judge in Massachusetts blocked the IRS and Treasury Department from sharing taxpayer data and address information with the Department of Homeland Security and ICE, reported Bloomberg and Law360.

U.S. District Judge Indira Talwani granted a preliminary injunction requested by immigrant support organizations, finding the plaintiffs are likely to succeed on claims that the policy violates confidentiality protections governing tax return information and would cause irreparable harm if allowed to continue.

In September, Keker, Van Nest, & Peters joined Asian Law Caucus and Greater Boston Legal Services (GBLS) in filing the case in the U.S. District Court for the District of Massachusetts on behalf of groups that provide taxpayer services and advocate for the rights and needs of immigrant communities: Community Economic Development Center of Southeastern Massachusetts (CEDC), National Korean American Service and Educational Consortium (NAKASEC), National Parents Union (NPU), and Undocublack Network (UBN).

In her ruling, Judge Talwani barred ICE, DHS, and their agents from inspecting, using, or acting on any return information obtained from the IRS, and froze both the flow of information and the government’s ability to rely on previously obtained tax data. The court concluded that ICE’s broad request for taxpayer data created a substantial risk that noncitizen members of the plaintiff organizations would have their information disclosed.

"The court didn't just stop future data sharing — it prohibits ICE, DHS, [Homeland Security] Secretary [Kristi] Noem, and all their agents from using or even viewing the taxpayer information they already illegally received," Keker partner Sarah Salomon said. "That kind of relief is rare, and it reflects how serious the agencies' privacy violations are." 

Judge Talwani also acknowledged fears about information sharing have deterred immigrant taxpayers from filing returns or seeking assistance from community tax-preparation programs, threatening voluntary compliance with federal tax laws and harming organizations that serve immigrant communities.

The Keker team on the case includes partners Sarah Salomon, Leo Lam, and Laurie Carr Mims, and associates Charlotte Kamai, Kelly Hernandez, and Leia Walker.

You can read the Law360 article here and the Bloomberg article here (subscriptions required).

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