AR148

An Assembly Resolution condemning the federal government’s actions in sharing private taxpayer information with the United States Immigration and Customs Enforcement (ICE) for immigration enforcement purposes.

Whereas, Since 1863, the federal Internal Revenue Service (IRS) has administered the collection of federal taxes, and in 2023, taxpayers filed 163.1 million tax returns; and

Whereas, The tax system depends on citizens being candid about personal and financially sensitive information, and in return the government has an obligation to respect and protect the personal and private nature of that information; and

Whereas, If taxpayers are given reason to doubt that the government will respect their privacy, the integrity and the efficacy of the voluntary tax system will erode over time; and

Whereas, Federal law, specifically section 6103 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.6103, sets forth the general rule that tax returns and tax return information is confidential, and generally restricts the IRS from disclosing any tax return information, and

Whereas, Limited exceptions to section 6103 require the IRS to disclose certain information to criminal investigators when it receives a proper request; and

Whereas, On April 7, 2025, the federal Department of the Treasury and the federal Department of Homeland Security executed a Memorandum of Understanding (MOU) to create a framework for information sharing between the IRS and the United States Immigration and Customs Enforcement (ICE) for immigration enforcement purposes; and

Whereas, According to court filings seeking a preliminary injunction to stop the implementation of the MOU, the IRS agrees to provide ICE with taxpayer information about undocumented immigrants who are facing deportation orders and under federal investigation; and

Whereas, Under the agreement, the IRS will verify the names and addresses of immigrants provided on tax records to ICE, and although it is unclear what other information could be provided by the IRS, preliminary sources suggest that this information could include the names of dependents; and

Whereas, According to news reports, attorneys for the IRS have advised the federal Department of the Treasury and the federal Department of Homeland Security that the data-sharing agreement likely violates federal privacy laws, and the acting Commissioner of the IRS was reportedly largely bypassed in the discussions leading to the execution of the agreement; and

Whereas, Shortly after the MOU was executed, the federal Treasury Department announced that the acting Commissioner of the IRS plans to resign, becoming the third head of the agency to leave since January 2025; and

Whereas, The previous acting Commissioner of the IRS also resigned in February 2025, shortly after refusing to sign a similar data-sharing agreement with the Department of Homeland Security; and

Whereas, The immigrant community in New Jersey contributed $1.3 billion in State and local taxes in 2022, according to a report by the Institute on Taxation and Economic Policy; and

Whereas, Not only will the sharing of private taxpayer data for immigration enforcement purposes deter immigrants from voluntarily paying federal taxes, but it could also result in broad targeting of certain groups of taxpayers, leading to the possibility of administrative errors that can result in disastrous consequences, such as mistaken deportations; now, therefore,

Be It Resolved by the General Assembly of the State of New Jersey:

1. This House condemns the federal government’s actions in sharing taxpayer information with the United States Immigration and Customs Enforcement (ICE) in the Department of Homeland Security for immigration enforcement purposes.

2. This House demands that the federal government immediately reverse its current policy whereby the IRS shares private taxpayer information with ICE, and calls on the federal government to express its commitment to respect the privacy of taxpayer information, uphold the integrity of the voluntary tax system, and keep the IRS out of immigration enforcement.

3. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the President and Vice President of the United States, the Secretary of the United States Department of the Treasury, the Secretary of the United States Department of Homeland Security, the Majority and Minority Leaders of the United States Senate, the Majority and Minority Leaders of the United States House of Representatives, and each member of the United States Congress elected from this State.

STATEMENT

This Assembly resolution condemns the federal government’s actions in undermining the privacy of taxpayer information, and demands an immediate reversal of the federal policy whereby the federal Internal Revenue Service (IRS) shares private taxpayer information with the United States Immigration and Customs Enforcement (ICE) in the federal Department of Homeland Security for immigration enforcement purposes.

On April 7, 2025, the federal Department of the Treasury and the federal Department of Homeland Security executed a Memorandum of Understanding (MOU) to create a framework for information sharing between the IRS and ICE for immigration enforcement purposes. According to news reports, attorneys for the IRS advised the federal Department of the Treasury and the federal Department of Homeland Security that the data-sharing likely violates federal privacy laws, and the acting Commissioner of the IRS was reportedly largely bypassed in the discussions leading to the execution of the agreement. Shortly after the MOU was executed, the federal Treasury Department announced that the acting Commissioner of the IRS plans to resign, becoming the third head of the agency to leave since January 2025. The previous acting Commissioner of the IRS also resigned in February 2025, shortly after refusing to sign a similar data-sharing agreement with the Department of Homeland Security.

Federal law, specifically section 6103 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.6103, sets forth the general rule that tax returns and tax return information is confidential, and generally restricts the IRS from disclosing any tax return information. Limited exceptions to section 6103 require the IRS to disclose certain information to criminal investigators when it receives a proper request.

According to court filings seeking a preliminary injunction to stop the implementation of the MOU, the IRS agrees to provide ICE with taxpayer information about undocumented immigrants who are facing deportation orders and under federal investigation. Under the agreement, the IRS will verify the names and addresses of immigrants provided on tax records to ICE, and although it is unclear what other information could be provided by the IRS, preliminary sources suggest that this information could include the names of dependents.

The immigrant community in New Jersey contributed $1.3 billion in State and local taxes in 2022, according to a study prepared by the Institute on Taxation and Economic Policy. Not only will the sharing of private taxpayer data for immigration enforcement purposes deter immigrants from voluntarily paying federal taxes, but it could also result in the broad targeting of certain groups of taxpayers, leading to the possibility of administrative errors that can result in disastrous consequences, such as mistaken deportations.

The resolution condemning the federal government’s actions and demanding a reversal in federal policy also calls on the federal government to express its commitment to respect the privacy of taxpayer information, uphold the integrity of the voluntary tax system, and keep the IRS out of immigration enforcement.