Court rejects bid to block IRS from sharing immigrants data with DHS

The Hill
by Max Rego
February 25, 2026
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Court rejects bid to block IRS from sharing immigrants data with DHS
A federal appeals court in Washington, D.C., has ruled against efforts by migrant advocacy groups to halt the Internal Revenue Service (IRS) from sharing immigrants' data with the Department of Homeland Security (DHS). The decision, made by a three-judge panel on the D.C. Circuit Court of Appeals, rejected a request filed by Centro de Trabajadores Unidos and other organizations seeking to temporarily block this data-sharing arrangement. The ruling highlights ongoing concerns about privacy rights and immigration enforcement in the U.S. The advocacy groups argued that sharing sensitive financial and personal information with DHS could endanger immigrants, particularly those who are undocumented or vulnerable. They contended that such data might be used for deportation purposes, raising fears of increased surveillance and potential harm to individuals who interact with the IRS. The legal challenge began after the IRS expanded its collaboration with DHS in recent years, sharing tax return information and other records. The court’s decision emphasizes a delicate balance between national security and individual privacy rights. While the ruling does not permanently settle the issue, it allows the data-sharing program to continue while the broader legal battle over its constitutionality unfolds. Advocacy groups have vowed to continue their fight, citing concerns about trust in government institutions and the potential chilling effect on immigrants’ willingness to engage with public services. This case underscores the growing tension between immigration enforcement strategies and privacy protections in the U.S. It also raises questions about how federal agencies handle sensitive data and share it with other branches of government. As the legal battle continues, the implications for both immigration policy and public trust in institutions remain significant. The outcome highlights the broader debate over the role of DHS and the IRS in enforcing immigration laws, particularly through the use of financial records. Advocacy groups argue that such practices can discourage immigrants from accessing essential services, creating a barrier to social safety nets and economic stability. The ruling sets an important precedent for how courts will weigh privacy concerns against national security interests in similar cases
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Originally published on The Hill on 2/25/2026