The Internal Revenue Service improperly disclosed the confidential taxpayer information of thousands of people with the Department of Homeland Security as part of the agencies' controversial agreement to share immigrant data to help identify those living in the country illegally, according to a new court filing.

The Treasury Department, the IRS and the Department of Homeland Security finalized a deal last spring to allow taxpayer data to be shared with immigration authorities to help them find illegal immigrants.

The agreement, which led to the resignations of top IRS officials, authorized Immigration and Customs Enforcement to submit names and addresses of illegal immigrants to the IRS for cross-verification against tax records.

In a declaration filed Wednesday, IRS Chief Risk and Control Officer Dottie Romo said the IRS was able to verify roughly 47,000 of the 1.28 million names ICE requested that were then disclosed to the immigration enforcement agency.

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The IRS gave ICE additional address information for under 5% of those names, potentially violating privacy rules created to protect taxpayer data.

The tax-collecting agency said it recently discovered the mistake and is working with other federal agencies to resolve the matter.

Romo said the Treasury notified DHS last month of the error and asked for its assistance in "promptly taking steps to remediate the matter consistent with federal law," which includes "appropriate disposal of any data provided to ICE by IRS based on incomplete or insufficient address information."

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The agreement last year between the IRS and DHS sparked litigation against the Trump administration and broke a longstanding IRS policy that encouraged immigrants to pay taxes even if they are not in the U.S. legally by assuring them that their data was safe.

A lawsuit was filed against Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem on behalf of several immigrant rights groups shortly after the agreement was signed.

Last week, a federal judge ordered the IRS to stop disclosing residential addresses to ICE, marking the second ruling blocking the IRS-DHS agreement.

In November, a different federal judge blocked the IRS from sharing information with DHS, saying the IRS illegally disseminated the tax data of some migrants over the summer, violating a taxpayer confidentiality law.

Advocate groups expressed concern that the potential unlawful release of taxpayer records could be used to maliciously target U.S. citizens and violate their privacy.

"Once taxpayer data is opened to immigration enforcement, mistakes are inevitable and the consequences fall on innocent people," Tom Bowman, policy counsel for the Center for Democracy & Technology, told The Associated Press. "The disclosure of thousands of confidential records unfortunately shows precisely why strict legal firewalls exist and have — until now — been treated as an important guardrail."

The Associated Press contributed to this report.

Chaos and fury erupted Monday in New York City’s affluent Upper East Side as residents packed a public meeting in protest of a planned homeless shelter they said "reeks of a for-profit intent."

The women's shelter, which was converted from a men’s center after massive public pushback, is slated to open around April and will accommodate up to 250 women.

At a Community Board 8 Manhattan meeting hosted by Housing Solutions of New York (HSNY), opponents sounded alarms over the shelter’s proximity to schools and daycare centers. Residents also accused city officials of deliberately rushing the process to limit community input, fast-tracking a deal they say appears lucrative for developers with little regard for neighborhood well-being.

The city reportedly told local leaders in early 2025 that the project was indefinitely shelved, only to announce it as an active and nearly completed center in January 2026, leaving the community with just weeks to organize before it opens.

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"What we’re offended by is the lack of notification and the wrong location. It shouldn't be here," community member Bonnie Barend said, criticizing the site's suitability. 

"And I'm also offended by the way you've been talking to these great citizens here tonight. They care about their community. They care about your safety, their children’s safety. We shouldn’t be denigrating anyone here."

In response, city representatives and some locals emphasized the urgent need for homeless services in districts that lack proper resources. 

To address concerns, the board said the center will include heavy security, strict curfews and a ban on residents with specific criminal histories, especially women on probation or parole for sex offenses due to the nearby school.

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However, when HSNY Chief Program Officer Xellex Rivera explained that it only asks newcomers about criminal history, the crowd erupted in outrage, with one resident shouting, "Unacceptable. That is not a background check."

Rivera responded, "That is fair. I 100% agree with everybody. That is fair." Rivera added that while it can check sex offender registries, it cannot conduct a full criminal background check.

Other residents raised concerns about the shelter’s proximity to a legal cannabis dispensary and a Home Depot, arguing that tools sold there could be used as weapons and suggesting that guards should be armed. A local father also cited a recent tragedy at a shelter in Long Island City to highlight potential risks to children.

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Tensions remained high as community members and city representatives continued to clash, with one resident shouting at board chairperson Valerie Mason, "You're not advocating for us!" 

During the uproar, the moderator added, "There are valid concerns being expressed but if you’re going to yell at me, it doesn’t help to get them aired."

Board member Todd "TJ" Stein also expressed disappointment with the process, saying, "This was just, unfortunately, not a really well-run meeting. And that just sucks. … We as a community had three weeks to basically be thrown this information."

In closing remarks, Valerie Mason acknowledged the atmosphere, saying, "I know it didn't start off that great, but people were a little hot-tempered and not willing to understand how the process works."