A federal appeals court has affirmed a preliminary injunction blocking an IRS policy that disclosed thousands of taxpayers’ addresses to immigration authorities, agreeing the agency’s automated process likely violated the strict confidentiality protections Congress built into the Tax Code. (Center for Taxpayer Rights v. IRS, 2026 WL 2635380, 9/8/2026)
The District of Columbia U.S. Circuit Court of Appeals unanimously upheld an order halting the IRS’ “Data-Exchange Procedure,” the automated system it built to answer U.S. Immigration and Customs Enforcement (ICE) requests for the last known addresses of people ICE suspects of residing in the country unlawfully. By the time the district court intervened, the IRS had turned over 47,289 records to ICE.
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