A watchdog report flags security risks in the IRS-ICE taxpayer data-sharing deal

WASHINGTON (AP) — A new Treasury inspector general report raises concerns about Immigration and Customs Enforcement’s ability to safeguard taxpayer information, after ICE and the IRS agreed in 2025 to share taxpayer data for the purpose of immigration investigations.

The recently released report provides the first official accounting of the scale of the IRS-ICE information transfer and documents security concerns surrounding an arrangement that has been the subject of multiple lawsuits and significant controversy inside both agencies.

Also known as TIGTA, Treasury’s inspector general found that the controversial 2025 data-sharing agreement crafted between ICE and the Treasury, which allowed ICE to submit names and addresses of immigrants inside the U.S. illegally to the IRS for cross-verification against tax records, resulted in inconsistent formatting in ICE’s data and the IRS’ matching criteria which led to errors.

The deal led the then-acting commissioner of the IRS to resign.

The report states that after the agreement was signed, ICE requested address information on more than 1.2 million people, and the IRS ultimately provided last-known addresses for about 47,000 people.

TIGTA concluded that the IRS’s automated matching process was flawed. Inconsistent formatting in ICE’s data led to questionable matches, including in cases where incomplete or inaccurate addresses were labeled as valid, the report says.

Representatives from Treasury and the IRS did not respond to an Associated Press request for comment.

The plan to cross-verify tax and immigration data is part of President Donald Trump’s agenda to secure U.S. borders and his larger nationwide immigration crackdown, which has resulted in deportations, workplace raids and the use of an 18th century wartime law to deport Venezuelan migrants.

However, this is not the first time it’s been revealed that tens of thousands of taxpayers’ information was revealed to ICE.

In February, a federal judge said that the IRS broke the law by disclosing confidential taxpayer information to Immigration and Customs Enforcement, referring to the same 47,000 disclosures that TIGTA points out.

U.S. District Judge Colleen Kollar-Kotelly found that the IRS had erroneously shared the taxpayer information of thousands of people with the Department of Homeland Security as part of the agencies’ controversial agreement to share information on immigrants for the purpose of identifying and deporting people illegally in the U.S.

No recommendations were made in the new TIGTA report, according to a letter written by Nancy A. LaManna, deputy inspector general for inspections and evaluations.

“However, we plan to share some concerns we identified during our review with the DHS Office of Inspector General,” her letter states.