The IRS previously agreed to a data-sharing scheme with the Department of Homeland Security to use some sensitive information to identify illegal immigrants.
Internal Revenue Service officials and the White House clashed over a request to access confidential tax records to help the administration locate suspected undocumented immigrants, which led to President Donald Trump dismissing Billy Long, the agency's commissioner, from his post, according to a report by The Washington Post on Saturday.
Newsweek reached out to the White House and U.S. Treasury outside of normal business hours on Saturday afternoon for comment.Why It MattersThe IRS has suffered significant cutbacks in personnel through the administration's Department of Government Efficiency , which experts warned could hamper core tax administration functions.The push by Trump and Elon Musk, who led DOGE before leaving the White House in May, drew widespread condemnation over the administration's slash-and-burn approach to shrinking the bureaucracy.Mass layoffs and removals at the IRS have also raised concerns about its ability to process tax returns and refunds.Long's removal comes less than two months after he was confirmed to lead the IRS. According to the Associated Press, he will be the shortest-tenured IRS commissioner confirmed by the Senate since the position was created in 1862.What To KnowThe Post, citing two people familiar with the situation who spoke on the condition of anonymity for fear of reprisals, reported that Long's dismissal followed a disagreement between members of the IRS and the administration after the previously agreed method of data sharing yielded an unsatisfying number of confirmed targets for immigration enforcement.The Trump administration has previously attempted to access sensitive, confidential data as part of its crackdown on illegal immigration. IRS Commissioner Melanie Krause stepped down for her position in April after refusing to allow immigration enforcement access to taxpayer data, and a federal judge shortly thereafter refused to stop the IRS from sharing immigrant tax information with Immigration and Customs Enforcement .The deal, agreed to in April, permitted ICE to submit names and addresses of suspected undocumented immigrants to the IRS, which then cross-checks the data against tax filings. Tax information is typically considered confidential and punishable by criminal penalties if improperly shared.According to the newspaper, the Department of Homeland Security recently asked the IRS to locate roughly 40,000 immigrants using their addresses cross-referenced with taxpayer information, but the service only managed to verify about 3 percent of the names submitted.The people verified had individual taxpayer identification numbers, and White House officials determined this was insufficient and requested information beyond the previously agreed parameters.Specifically, the administration wanted to know if the people in question had claimed income tax credit, which can reduce the tax bill for low-income filers.The IRS declined to provide this information, citing taxpayer privacy rights, according to the Post, which Long had previously stated he would not provide due to falling outside the previously agreed parameters.Trump thereafter removed Long, a former six-term Republican congressman from Missouri, from his post on Friday, making him the ambassador to Iceland and temporarily replacing him with Treasury Secretary Scott Bessent, marking the fifth change in leadership at the IRS since Trump returned to office in January.What People Are SayingWhite House spokeswoman Abigail Jackson told The Washington Post in a statement: 'The Trump administration is working in lockstep to eliminate information silos and to prevent illegal aliens from taking advantage of benefits meant for hardworking American taxpayers. Any absurd assertion other than everyone being aligned on the mission is simply false and totally fake news.'Former IRS Commissioner Billy Long posted on X on Friday: 'It is a honor to serve my friend President Trump and I am excited to take on my new role as the ambassador to Iceland. I am thrilled to answer his call to service and deeply committed to advancing his bold agenda. Exciting times ahead!'What Happens Next?Bessent will serve as acting IRS commissioner while the administration considers a permanent successor, leaving the agency again under interim leadership as it addresses operational strains tied to layoffs and program changes.
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