The IRS is facing growing criticism for two major issues. Tax refunds remain delayed for many Americans, and a new system will allow ICE to access taxpayer data in bulk.
Maryland lawmakers are pushing the agency to process refunds faster. At the same time, ProPublica obtained internal documents showing that the IRS is building a platform to share personal data with immigration officials.
Maryland lawmakers urge refund relief after months of delays
Senators Chris Van Hollen and Angela Alsobrooks, along with seven Maryland House Democrats, sent a letter to IRS Commissioner Billy Long. They called for immediate improvements to refund processing.
“By the time a constituent has the required hardship documentation to expedite their case, they typically have 30 days at most before they and their families face serious distress,” the letter stated.
Some key examples include:
- A single mother submitted hardship paperwork in September 2024 but didn’t receive her refund until February 2025.
- Businesses waiting on CARES Act and Rescue Plan funds from 2021 still haven’t received payments.
The lawmakers blame these delays on staffing cuts from the Trump-era Department of Government Efficiency. According to CBS, the IRS has lost nearly 3,600 tax auditors since 2023.
IRS is building a system to give ICE access to tax data
ProPublica’s report reveals that IRS engineers are developing an automated system. This platform would allow ICE to match names and addresses from deportation orders with taxpayer records.
Here’s how the system would work:
- ICE uploads a spreadsheet with names, states, and removal orders.
- The IRS tries to match this info to its taxpayer database.
- If matched, the system sends back the most recent address from tax filings.
Critics warn the system could easily make mistakes. It starts with names, not taxpayer ID numbers, raising the risk of mismatches and wrongful arrests. Engineers working on the blueprint also voiced concern about personal legal liability and some have refused to join the project.
Critics say system breaks trust, risks legal violations
Immigrant advocates argue this new approach undermines decades of IRS policy. The agency has long promised not to use taxpayer information for immigration enforcement.
“The IRS has gone back on its word,” said Nandan Joshi, an attorney at Public Citizen.
A federal judge upheld the IRS–DHS agreement in May. But at that time, the automated system did not exist. Legal experts say the blueprint could still face future challenges.
ProPublica also uncovered a rejected DHS proposal that would expand data requests to include lawful residents and U.S. citizens. The IRS’s top attorney at the time, Andrew De Mello, opposed the plan. He was later forced out of the agency.
What happens next
- Lawmakers requested a full review of refund delays by July 31.
- The new data-sharing system could launch by the end of July.
- Legal fights over IRS policy and taxpayer privacy are still underway.
The IRS now faces pressure to deliver faster refunds while defending a controversial system that could reshape the way taxpayer data is handled.
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