Federal Court Backs DHS in IRS Data-Sharing Dispute

A federal judge has sided with the Department of Homeland Security in an early stage of a lawsuit aimed at halting its data-sharing arrangement with the Internal Revenue Service. The ruling allows DHS to continue using IRS information to support immigration enforcement, marking a significant win for the Biden-era agency now operating under the Trump administration.

The U.S. District Court for the District of Columbia denied a preliminary injunction sought by activist legal organizations that challenged the legality of a Memorandum of Understanding between DHS and the IRS. These groups argued that the agreement violated federal tax law by permitting data sharing for immigration enforcement purposes. However, the court determined that the memorandum does not breach the Internal Revenue Code, allowing the collaboration to proceed as litigation continues.

This decision enables U.S. Immigration and Customs Enforcement to maintain access to specific IRS data for the enforcement of immigration-related criminal laws. According to DHS officials, the information will be used to locate undocumented immigrants, especially those involved in criminal activity, and to assess potential threats to national security or the integrity of federal programs. The agency also noted its intention to target individuals who may have unlawfully received public benefits or remain improperly registered on voter rolls.

The ruling was welcomed by DHS leadership, who framed the decision as a critical step in restoring interagency coordination efforts dismantled or underutilized by the previous administration. The court’s opinion, authored by Judge Dabney Friedrich, focused on the legality of the agreement itself, concluding that the data-sharing plan between DHS and the IRS does not violate existing statutory constraints.

Article by multiple RFHC contributors, based upon information from the U.S. Department of Homeland Security Office of Public Affairs press release

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