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Federal court blocks IRS data sharing with immigration authorities

9/9/2026

A federal data-privacy law rooted in the Watergate era has emerged as a firm constraint on the Trump administration's mass deportation strategy.

Court of Appeals for the District of Columbia Circuit ruled on Tuesday that the Internal Revenue Service acted unlawfully when it shared taxpayer addresses with Immigration and Customs Enforcement, upholding a lower-court injunction that blocks the practice.

The three-judge panel, with U.S. Circuit Judge Cornelia Pillard writing for the court, found the IRS violated a federal tax-confidentiality statute in several respects.

The law, adopted in the aftermath of the Watergate scandal, generally bars the IRS from sharing tax-return information with other federal agencies unless stringent conditions are met.

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