The IRS is nearing a controversial agreement with Immigration and Customs Enforcement (ICE) to assist in verifying the home addresses of individuals targeted for deportation, according to a report by The New York Times.

The draft agreement would allow the IRS to confirm whether ICE has accurate address information for immigrants who have received final deportation orders. 

This move marks a significant departure from longstanding IRS policy. Historically, the agency has shielded taxpayer information—even for undocumented immigrants—citing strict federal confidentiality rules. The IRS has also provided Individual Taxpayer Identification Numbers (ITIN) to undocumented immigrants to encourage voluntary tax compliance. 

The proposed arrangement, however, does not grant ICE direct access to IRS records. Instead, the IRS would confirm the accuracy of addresses provided by ICE, a narrower scope than a previous DHS request that sought full data access.

The new agreement follows a shake-up in IRS leadership, including the replacement of the agency’s top lawyer, which may have influenced the agency’s stance. 

While the final terms are still being negotiated, civil liberties advocates and tax professionals have expressed concern that this cooperation could erode trust in the tax system, discourage compliance among immigrant taxpayers and raise legal questions over taxpayer privacy protections.