Judge Blocks IRS Data Sharing with Immigration Authorities

U.S. District Judge Indira Talwani issued a preliminary injunction on February 5, 2026, blocking the Internal Revenue Service (IRS) from sharing taxpayer data with U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS). The ruling prevents these agencies from using personal information, such as addresses and taxpayer identification numbers, to facilitate the removal of noncitizens. Talwani found a high likelihood that the data sharing violated the Administrative Procedure Act and Section 6103 of the Internal Revenue Code, noting that ICE appeared to data-mine files rather than following criminal investigation procedures.

The legal challenge follows an agreement between DHS Secretary Kristi Noem and Treasury Secretary Scott Bessent, which had already provided the records of approximately 47,000 noncitizen taxpayers to ICE in August 2025. Talwani expressed concern that the practice could discourage immigrants from filing taxes and increase the risk of wrongful arrests for legal citizens with similar names.

This decision aligns with a previous injunction by Judge Colleen Kollar-Kotelly, which the Trump administration has appealed. The ruling comes amid heightened political tension following two deadly shootings of U.S. citizens by federal agents in Minneapolis. Senate Democratic Minority Leader Chuck Schumer condemned the conduct of ICE as thuggery, while President Donald Trump defended Secretary Noem and asserted that his administration is effectively removing criminal illegal aliens.