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IRS under Trump unlawfully shared taxpayer info with immigration authorities, court rules

The panel said the IRS likely violated federal privacy law by disclosing more than 47,000 taxpayer records in a program tied to immigration enforcement.

  • On Tuesday, the U.S. Court of Appeals for the District of Columbia Circuit upheld an injunction blocking an Internal Revenue Service policy that shared taxpayer addresses with Immigration and Customs Enforcement, citing violations of federal privacy law.
  • Under a 2025 agreement, the IRS shared taxpayer records with ICE for mass deportation efforts, despite Section 6103 of the Internal Revenue Code restricting such disclosures to agencies meeting stringent conditions.
  • Processing errors allowed ICE to obtain taxpayer information using invalid address entries like "Don't Care 12345," with over 90% of roughly 47,000 disclosed records processed through a matching system that failed to verify valid addresses.
  • U.S. Circuit Judge Cornelia Pillard criticized the procedure as "weak sauce," finding the government faces potential damages for about 43,000 taxpayers whose return information was unlawfully shared under the now-blocked data-exchange arrangement.
  • This ruling coincides with a broader legal challenge against the administration's expanded Systematic Alien Verification for Entitlements program, as both cases reflect intensifying conflicts over federal data use for immigration and election enforcement ahead of November's elections.
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A federal appeals court in the US has imposed a ban on the transfer of immigrant data from the IRS to ICE, citing the privacy of taxpayers' personal data. The post US: Appeals court prohibits the IRS from transferring immigrant data to ICE appeared first on in.gr.

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Reuters broke the news in London, United Kingdom on Tuesday, September 8, 2026.
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