On November 21, 2025, a federal judge granted a preliminary injunction blocking the IRS from sharing taxpayers’ sensitive data, with DHS and its enforcement arm, ICE. 

The ruling stems from a lawsuit filed by a coalition of taxpayer-rights groups, labor unions, and low-income tax clinics. They argued that the data-sharing agreement violated longstanding federal protections for taxpayer confidentiality, and lacked proper public-rulemaking procedures as required under the APA.

In granting the injunction, it was concluded that the IRS’s turn toward data sharing was “arbitrary and capricious.” The court also noted the serious risk of “irreparable harm”, including the possibility that immigrants would avoid filing taxes or seeking low-income tax help out of fear their data could be used for deportation. 

Why It Matters

  • Protection of Taxpayer Privacy
    For decades, U.S. tax law has promised confidentiality. The IRS sharing data with immigration enforcement would have broken that promise, especially for immigrants and mixed-status families filing taxes under valid or ITIN-based returns. This ruling defends those protections. 
  • Preventing Chilling Effects on Tax Compliance
     Advocates testified that many immigrants stopped using free tax clinics or filing taxes altogether after learning about the data-sharing agreement, even though paying taxes is a legal obligation and a civic duty. The court recognized such “chilling effect” as real harm, both to individuals and to public revenue. 
  • Limits on Immigration Enforcement via Tax Data
     With this decision, DHS and ICE lose a powerful enforcement tool that could have allowed mass data-driven deportations. The injunction reinstates important guardrails around law-enforcement access to private data.

Who Benefits, and Who Should Still Stay Alert

  • Immigrants, Asylees & ITIN-filers
    If you’ve been filing taxes under your ITIN or other valid status this decision protects your right to privacy and reassures you that your information won’t automatically be used for immigration enforcement. 
  • Mixed-Status Families & Low-Income Tax Clinics
    Organizations providing pro bono tax help can now operate without the fear their clients will be targeted. That means vulnerable communities can continue to access critical tax and financial services. 
  • Employers & HR Teams
    For companies that employ non-citizen workers or rely on immigrant staff, this is a relief. The risk of mass verification sweeps tied to tax records is much lower for now.

What You Should Do Now

  1. Continue filing your taxes as usual: the ruling preserves your confidentiality under federal tax law. 
  2. Avoid panic-decisions like dropping off the grid. Confidentiality is restored (for now), and stability is key. 
  3. Stay informed and connected: follow updates carefully, and consult with immigration counsel if you have questions or concerns. 
  4. Support trusted tax clinics and CBOs: these services remain essential for immigrant communities, especially vulnerable or low-income individuals. 

How Garvish Immigration Law Group Can Help

At Garvish Immigration Law Group we believe in protecting both legal pathways and the privacy rights of immigrants. We’re closely tracking the developments in this case, and are always ready to support individuals and employers who have concerns about status, tax filings, and immigration enforcement.

If you have worries about tax-record privacy, immigration risk, or need help planning your status strategically, we’re here for you. Contact us for a consultation and we’ll help you understand your rights and options.