Chang added that IRS employees have to follow very strict rules when handling taxpayer data — as established by the Internal Revenue Code, created by Congress in 1939.
These rules only allow the IRS to share information in very limited circumstances, including an audit or certain criminal investigations — like those involving a terrorist threat.
Even the president is blocked from directly accessing IRS data. In 1976, Congress strengthened the privacy rules in the Internal Revenue Code after White House employees admitted they had tried to obtain tax information about individuals who then-President Richard Nixon considered to be his enemies.
Using the IRS as a political tool would later be one of the accusations Nixon faced from lawmakers who sought to impeach him.
What’s next in this legal battle?
The Trump administration may challenge Talwani’s order in the First Circuit Court of Appeals — the next rung in the hierarchy of the federal court system — although the government hasn’t confirmed this yet.
The White House has already challenged a similar ruling against the IRS-ICE agreement by Washington, D.C.-based federal judge Colleen Kollar-Kotelly.
If the administration does challenge the order, what could happen then? A higher-ranking judge could either back Talwani’s decision or overrule it, giving ICE once again access to IRS data.
But ultimately, the outcome of any future legal battle is unclear, Chang said.
However, as of now, the IRS remains blocked from sharing any personal taxpayer information with ICE or DHS. We’ll update this guide as new information comes in from the courts.
What are tax experts recommending to filers?
As the future of the IRS-ICE agreement remains unclear, community organizations that provide free tax services say they’re still hearing worries from ITIN holders — who are afraid that filing their taxes this year could come at great personal risk.
“We let them know that we’re still helping them file taxes,” said Lindsay Rojas, director of free tax help at United Way Bay Area. “And if they have any questions or doubts, they should consult an immigration attorney for their case.”
Rojas stressed that rather than there being any one-size-fits-all advice, this is a decision a person “should make based on their household” and their individual circumstances. Families living in the Bay Area can call 211 to find free tax filing services and an immigration attorney referral.
Other groups that provide tax aid confirmed with KQED that they’re also advising filers to check in first with an immigration attorney if they are concerned about their data privacy. It’s also important to mention that if someone has filed with an ITIN for several years already, the IRS has already received their personal information for past filings.
It’s also important to take into account the potential consequences of not filing taxes, said Minnie Sage, program director of San Francisco-based Tax-Aid. “A tax return is oftentimes a requirement for proof of income, with things like housing, education and federal loans like FAFSA,” she said. “It also helps avoid additional costs and penalties.”
Sandra Argueta-Bonneville, director of operations for the Los Angeles-based Central City Neighborhood Partners, said her tax team is still seeing folks come in wanting to file with an ITIN. “We really thought that these numbers were going to plummet,” she said — before adding that many community members still feel a strong responsibility to pay taxes and have the hope that fulfilling this commitment will help their immigration process in the future.
What else should ITIN holders know?
Last summer, Congress passed the massive spending and tax plan known as the One Big Beautiful Bill, which severely limited the tax credits ITIN holders qualify for.
If a household does not have at least one taxpayer who’s filing their 2025 taxes with a Social Security number, that family will not qualify for the federal Child Tax Credit or the Earned Income Tax Credit. Children claimed as dependents will also need to have a Social Security Number in order to receive the Child Tax Credit.
Not receiving these credits could now mean a refund that’s thousands of dollars smaller than what families previously received, Argueta-Bonneville said. “A lot of our families really depend on the credits and refunds to be able to reinvest in themselves, their children, and they’re also reinvesting into the community,” she added.
However, families filing with an ITIN are still eligible for California’s Earned Income Tax Credit — and if they have children under 6 years old, they can also receive the state’s Young Child Tax Credit.
