IRS chief declines to answer questions on unlawful taxpayer data disclosures to ICE

IRS CEO Frank Bisignano declined to answer lawmakers’ questions Wednesday about the agency’s unlawful sharing of confidential taxpayer data with immigration authorities, telling the House Ways and Means Committee the disclosures occurred before his tenure began. A federal judge found last month that the IRS illegally shared taxpayer information approximately 42,695 times with Immigration and Customs Enforcement. Bisignano confirmed that no IRS employee has been fired or disciplined in connection with the disclosures.

The hearing exposed a gap between the Trump administration’s immigration enforcement agenda and statutory protections for taxpayer privacy, with two federal court injunctions currently blocking further data transfers and barring ICE from acting on any IRS information already in its possession.

The head of the IRS largely refused to answer questions Wednesday about the agency’s unlawful sharing of confidential taxpayer data with immigration enforcement, his first congressional hearing since taking the job.

Frank Bisignano, who was named IRS chief executive officer last October, told the House Ways and Means Committee that the disclosures occurred before his tenure and that he did not want to address them while litigation is pending. He confirmed that no employee has been fired or disciplined.

“Was anyone fired? Was anyone disciplined? Was anyone held accountable? Was anyone held to account?” Rep. Mike Thompson, D-Calif., asked Bisignano at the hearing.

Bisignano said no. He cited ongoing litigation and added, “I don’t want to debate the numbers.”

Court found approximately 42,695 unlawful disclosures

U.S. District Judge Colleen Kollar-Kotelly found last month that the IRS unlawfully shared the confidential taxpayer information of thousands of people with Immigration and Customs Enforcement approximately 42,695 times. The disclosures were part of an agreement between ICE and the Department of Homeland Security to share information on immigrants for the purpose of identifying and deporting people.

Two court orders have since blocked the IRS and DHS from large-scale transfers of taxpayer data and barred ICE from acting on any IRS information already in its possession. Those preliminary injunctions remain in place.

Rep. Suzan DelBene, D-Wash., said, “This is a catastrophic leadership failure and a huge hit on the public’s confidence in your integrity.”

Bisignano responded, “Obviously all these events occurred before my tenure.” He added it was “my responsibility to get it right.”

Agreement led prior acting commissioner to resign

The data-sharing agreement was signed last April by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem. It allows ICE to submit names and addresses of immigrants inside the U.S. illegally to the IRS for cross-verification against tax records. The agreement led the then-acting commissioner of the IRS to resign.

Bessent remains acting commissioner of the IRS while Bisignano holds the newly created CEO title. Bisignano also serves as commissioner of the Social Security Administration.

Republicans highlight tax refund increases

Republican members of the committee focused their remarks on the implementation of the Republicans’ sweeping tax and spending law and what they described as benefits to taxpayers.

Committee Chairman Jason Smith, R-Mo., said under the new law, “Americans are getting bigger refunds that put more money back into their pockets.”

According to the latest IRS data, the average refund is $3,804 in 2026, up from $3,453 in 2025, a difference of $351 — an increase of roughly 10%. The White House had projected that refunds would be up by $1,000 on average.

The law eliminates taxes on tips and overtime, exempts certain car loan interest, creates a deduction for older adults, and establishes savings accounts for children.

Union contract cuts draw Democratic challenge

Democrats also pressed Bisignano on the IRS’s decision last month to cut union contracts with its workers. Rep. Richard Neal, D-Mass., contended that “by terminating the union contract it makes it easier to take apart the IRS.”

Bisignano, the son of a former Treasury Department worker, said federal employees already hold legal protections superior to any union contract. “They’re losing nothing,” he said.