A federal judge ruled that the IRS violated federal law by disclosing approximately 42,695 confidential taxpayer addresses to ICE, after ICE had requested information on roughly 1.28 million people under a data-sharing agreement signed by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem. The judge found the IRS failed to verify that ICE's requests met statutory requirements under Section 6103 of the Internal Revenue Code before disclosing the addresses, and advocacy groups say the finding confirms an unlawful IRS policy. The government is appealing the ruling, and a federal appeals panel this week declined to block the data-sharing agreement while litigation continues. Immigrant communities, including Haitian Americans, have expressed concern that tax compliance information could be used for deportation purposes, potentially discouraging people from filing taxes.