Democrats Demand a Federal Investigation into the Reported IRS Leak of 47,000 Taxpayers’ Confidential Data

SPEAKIN’ OUT NEWS

U.S. Rep. Terri Sewell (D-AL) is leading efforts to investigate the reported IRS sharing of confidential taxpayer information with the Department of Homeland Security. (Sewell.gov)

Democratic lawmakers are calling for a federal investigation after reports that the Internal Revenue Service shared confidential information belonging to 47,000 taxpayers with the Department of Homeland Security (DHS).

Members of the House Ways and Means Committee have formally requested that the Treasury Inspector General for Tax Administration (TIGTA) investigate what they describe as an improper disclosure of protected taxpayer data. The request follows reporting that the IRS agreed in April to share sensitive information — including names and addresses — of individuals targeted for immigration enforcement.

U.S. Representative Terri Sewell, D-Alabama, ranking member of the Ways and Means Oversight Subcommittee, joined Representatives Linda T. Sánchez, Mike Thompson, and Jimmy Gomez in leading 14 additional Democratic members in signing the letter demanding an inquiry.

Sewell and her colleagues warned that such disclosures could severely undermine public trust in the tax system.

“When agencies take advantage of public trust by illegally sharing taxpayer data, it creates an environment wherein undocumented individuals are not comfortable complying with tax law,” Sewell and fellow lawmakers wrote in their letter. “Undocumented immigrants have paid taxes for years with assurances that they can safely do so—this illegal action has pulled the rug out from under working individuals who are trying to comply with the law.”

In a statement released by Sewell’s office, lawmakers characterized the agreement as part of what they described as the Trump administration’s unlawful approach to immigration enforcement. Federal courts have since ruled that sharing this private data violated taxpayers’ rights, according to the release.

Lawmakers argue that federal tax privacy protections under Section 6103 of the Internal Revenue Code strictly limit the sharing of taxpayer information. They contend that disclosing data for immigration enforcement purposes violates long-standing confidentiality safeguards.

According to a news release from Sewell’s office, federal courts have since held that the data-sharing arrangement violated taxpayers’ rights.

In their letter, the lawmakers asked TIGTA to conduct a comprehensive and timely investigation, produce a detailed report with findings and recommendations, provide Congress with an unredacted version, and make as much of the report public as possible consistent with federal privacy law.

In addition to Sewell, Sánchez, Thompson, and Gomez, the letter was signed by Representatives Lloyd Doggett (D-Texas), John Larson (D-Conn.), Danny Davis (D-Ill.), Suzan K. DelBene (D-Wash.), Judy Chu (D-Calif.), Gwen Moore (D-Wis.), Brendan Boyle (D-Pa.), Don Beyer (D-Va.), Dwight Evans (D-Pa.), Brad Schneider (D-Ill.), Jimmy Panetta (D-Calif.), Steven Horsford (D-Nev.), Stacey Plaskett (D-V.I.), and Tom Suozzi (D-N.Y.).

The controversy has intensified debate over the intersection of immigration enforcement and taxpayer privacy. For years, undocumented immigrants have filed taxes using Individual Taxpayer Identification Numbers (ITINs), operating under assurances that their information would remain confidential.

Lawmakers say restoring confidence in taxpayer privacy is essential to maintaining voluntary compliance and protecting the integrity of the nation’s tax system.

As calls for oversight grow, TIGTA’s response could determine whether further accountability measures follow.