A federal Court signaled that the IRS likely violated §6103 by providing thousands of taxpayers' addresses to ICE in response to incomplete requests, and the appellate Court may now decide whether deeper discovery into the program is warranted.
Holding
The district Court indicated that it would supplement the appellate record with a declaration admitting unlawful disclosures of taxpayers' addresses to ICE. It stated that the plaintiffs’ discovery request raises a substantial issue warranting further review by the D.C. Circuit.
Why It Matters
Confidential tax data protections tested. The case centers on §6103, the statute that strictly limits disclosure of tax return information to other agencies.
Large-scale disclosure is involved. The IRS transmitted roughly 47,000 taxpayer addresses to ICE under a process the agency now admits did not comply with statutory requirements.
Potential APA litigation risk. Plaintiffs argue the IRS adopted an unlawful address-sharing policy. If discovery proceed…
