1. What did the federal judge rule?

U.S. District Judge Colleen Kollar-Kotelly issued a temporary injunction blocking the IRS from sharing taxpayer information with U.S. Immigration and Customs Enforcement (ICE). In a 94-page ruling, she declared the "Address-Sharing Policy" unlawful under the Administrative Procedure Act. The judge found that disclosing confidential taxpayer addresses violated strict provisions of the Internal Revenue Code designed to protect privacy.

2. Why was the IRS sharing this data?

The Trump administration implemented this policy to aid its immigration enforcement efforts by using tax records to locate undocumented individuals. By accessing the home addresses filed on tax returns, ICE aimed to track down suspects for deportation more efficiently. The administration has argued that inter-agency data sharing is a necessary tool for national security and enforcing immigration laws.

3. Who is affected by this ruling?

The order specifically enjoins the IRS, the Treasury Department, and Treasury Secretary Scott Bessent, who is currently serving as the acting IRS commissioner, from sharing tax return information with the Department of Homeland Security. This effectively pauses the flow of data that could be used to locate tens of thousands of individuals. However, the judge noted exceptions for sharing data related to specific non-tax criminal investigations with judicial approval.

4. Why has there been turnover at the IRS?

The push for data sharing has coincided with significant leadership instability at the tax agency. Six different people have led the IRS this year alone, with President Trump removing Commissioner Billy Long in August. Treasury Secretary Scott Bessent has since stepped in as acting commissioner, overseeing the controversial policy that has now been halted by the courts.