Bill > SR130

Introduced Session

This Senate resolution condemns the federal government's actions in undermining the privacy of taxpayer information, and demands an immediate reversal of the federal policy whereby the federal Internal Revenue Service (IRS) shares private taxpayer information with the United States Immigration and Customs Enforcement (ICE) in the federal Department of Homeland Security for immigration enforcement purposes. On April 7, 2025, the federal Department of the Treasury and the federal Department of Homeland Security executed a Memorandum of Understanding (MOU) to create a framework for information sharing between the IRS and ICE for immigration enforcement purposes. According to news reports, attorneys for the IRS advised the federal Department of the Treasury and the federal Department of Homeland Security that the data-sharing likely violates federal privacy laws, and the acting Commissioner of the IRS was reportedly largely bypassed in the discussions leading to the execution of the agreement. Shortly after the MOU was executed, the federal Treasury Department announced that the acting Commissioner of the IRS plans to resign, becoming the third head of the agency to leave since January 2025. The previous acting Commissioner of the IRS also resigned in February 2025, shortly after refusing to sign a similar data-sharing agreement with the Department of Homeland Security. Federal law, specifically section 6103 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.6103, sets forth the general rule that tax returns and tax return information is confidential, and generally restricts the IRS from disclosing any tax return information. Limited exceptions to section 6103 require the IRS to disclose certain information to criminal investigators when it receives a proper request. According to court filings seeking a preliminary injunction to stop the implementation of the MOU, the IRS agrees to provide ICE with taxpayer information about undocumented immigrants who are facing deportation orders and under federal investigation. Under the agreement, the IRS will verify the names and addresses of immigrants provided on tax records to ICE, and although it is unclear what other information could be provided by the IRS, preliminary sources suggest that this information could include the names of dependents. The immigrant community in New Jersey contributed $1.3 billion in State and local taxes in 2022, according to a study prepared by the Institute on Taxation and Economic Policy. Not only will the sharing of private taxpayer data for immigration enforcement purposes deter immigrants from voluntarily paying federal taxes, but it could also result in the broad targeting of certain groups of taxpayers, leading to the possibility of administrative errors that can result in disastrous consequences, such as mistaken deportations. The resolution condemning the federal government's actions and demanding a reversal in federal policy also calls on the federal government to express its commitment to respect the privacy of taxpayer information, uphold the integrity of the voluntary tax system, and keep the IRS out of immigration enforcement.

Committee Categories

Joe Cryan (D)*, 

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 05/19/2025)

Official Document