The IRS Knows Where All The Criminals Live And What They Do

The Internal Revenue Service (IRS) has recently finalized a data-sharing agreement with U.S. Immigration and Customs Enforcement (ICE), marking a significant shift in federal policy as of early April 2025. Under this memorandum of understanding, ICE can submit names and addresses of undocumented immigrants with final removal orders to the IRS, which then cross-references this information against its taxpayer databases to confirm their locations. This move, driven by the Trump administration’s push for mass deportations, leverages the fact that many undocumented immigrants file taxes using Individual Taxpayer Identification Numbers (ITINs), contributing billions annually—estimated at $96.7 billion in 2022 by the Institute on Taxation and Economic Policy. Historically, the IRS has guarded taxpayer privacy fiercely, but a narrow exception in federal law allows data sharing for criminal investigations, which the administration has interpreted to include immigration enforcement. This agreement, signed by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, aims to streamline ICE’s efforts to locate individuals who have not complied with deportation orders.

This collaboration significantly enhances ICE’s ability to round up undocumented immigrants by providing access to up-to-date address information that many immigrants provide when filing taxes. ICE’s Enforcement and Removal Operations (ERO) officers, tasked with interior immigration enforcement, often struggle to track individuals who fail to update their addresses after receiving removal orders—ICE currently monitors nearly 8 million people on its deportation docket. By tapping into IRS data, ICE can bypass time-consuming manual searches, improving efficiency in locating and apprehending those who have overstayed their removal orders by more than 90 days, a group the administration labels as criminal violators for failing to comply with federal law. The agreement includes guardrails, such as requiring requests to come directly from high-ranking officials like the Homeland Security Secretary or acting ICE director, and limits data use to those under criminal investigation for immigration violations, ensuring a targeted approach that aligns with the administration’s stated focus on public safety and national security.

The policy has sparked both support and concern, but its practical impact on law enforcement is clear: it provides a powerful tool to execute deportations at scale. Proponents argue that this data-sharing is a logical step to enforce existing court orders, especially since undocumented immigrants have already been through due process and received final removal orders. The Department of Homeland Security (DHS) has emphasized that this initiative targets individuals posing potential public safety risks, such as those with criminal records, aligning with Trump’s campaign promise to deport millions. By integrating IRS data into ICE’s operations, law enforcement can more effectively coordinate large-scale deportation efforts, potentially increasing daily arrests from the current goal of 1,200 to 1,500, as part of what Trump has called the largest deportation operation in U.S. history. However, critics warn that this could drive immigrant communities underground, reducing tax compliance and straining the IRS’s core mission, while raising questions about the long-term erosion of trust in federal institutions.