The D.C. Circuit Court of Appeals this week ruled that the IRS may share certain taxpayer records with the Department of Homeland Security to assist immigration enforcement.
The decision clarified that tax-return confidentiality under Section 6103 is not an absolute shield against lawful disclosures used in immigration cases.
At the heart of the dispute was Section 6103 of the Internal Revenue Code, which sets rules for the confidentiality of tax returns.
Immigrant advocacy groups had argued the statute forbids the IRS from providing information to DHS for deportation and warned such cooperation would undermine trust in the tax system.
Court Ruling
The appeals court rejected that view and concluded the law contains exceptions allowing disclosures tied to legitimate law enforcement functions.
The ruling reversed a lower court order that had prevented the Trump administration from coordinating between the IRS and DHS.
For years, millions of immigrants without legal authorization have filed tax returns using Individual Taxpayer Identification Numbers, or ITINs.
🚨 BREAKING — DC APPEALS COURT SIDES WITH TRUMP: Rules the IRS CAN share information on illegals with the Department of Homeland Security for deportations
LFG!!! 🇺🇸
This opens up a TON of new doors for DHS to speed up deportations. pic.twitter.com/ANnrsufUXa
— Nick Sortor (@nicksortor) February 24, 2026
Reactions
Supporters of the administration say the appeals court restored common sense to how federal agencies cooperate on enforcement.
They argue agencies should not be forced to operate in silos when enforcing federal law.
Proponents say sharing relevant records between agencies is basic governance, not a constitutional crisis, when someone is in the country illegally.
Critics of the earlier ruling warned it created a de facto safe harbor that allowed illegal residents to provide personal data to one federal office while shielding it from another.
Opponents also claimed the policy could discourage tax compliance among immigrant communities.
Supporters counter that following immigration law is not optional and that filing a tax return does not confer immunity from enforcement.
Next Steps
The Department of Homeland Security has not yet detailed how it will implement the ruling.
The IRS similarly has not outlined public procedures for future information sharing.
The decision is another courtroom win for the administration’s broader immigration agenda focused on tightening border security and increasing interior enforcement.
Legal challenges are likely to continue and the dispute could eventually reach the Supreme Court.
For now, the appeals court sent a clear message that federal law does not require the IRS to act as a firewall against immigration enforcement.
