IRS Taxpayer Data Breach Sparks Legal Battle

A federal judge ruled on Thursday that the Internal Revenue Service (IRS) violated federal law by disclosing confidential taxpayer information to Immigration and Customs Enforcement (ICE) approximately 42,695 times. The disclosure occurred as part of a controversial data-sharing agreement with the Department of Homeland Security (DHS) aimed at identifying and deporting individuals residing illegally in the United States.

The ruling by US District Judge Colleen Kollar-Kotelly is based on a declaration by Dottie Romo, the IRS' chief risk and control officer. Romo's statement revealed that the IRS provided taxpayer information on around 47,000 individuals requested by ICE, which included additional address data, violations of privacy rules designed to protect taxpayer information.

This decision comes amid ongoing legal battles challenging the IRS-DHS agreement. Although a three-judge panel declined to issue a preliminary injunction for immigrant-rights groups, two separate court orders have halted massive transfers of taxpayer information, keeping preliminary protections in place.