Inside the IRS’s plans to share highly confidential taxpayer data with ICE

Summary

Apple News Today: Episode Summary - "Inside the IRS’s Plans to Share Highly Confidential Taxpayer Data with ICE"

Release Date: July 29, 2025
Host: Shumita Basu

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1. Introduction and Overview

In this episode of Apple News Today, host Shumita Basu navigates listeners through several pressing national and international issues. The primary focus revolves around the controversial data-sharing arrangement between the Internal Revenue Service (IRS) and Immigration and Customs Enforcement (ICE). Additionally, the episode delves into historical labor abuses by a major car manufacturer in the Amazon, the introduction of mental health warnings for social media in Minnesota, and significant economic updates impacting the U.S. economy.

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2. A Pivotal Week for the U.S. Economy

Economic Data Releases and Tariff Implications

Shumita Basu opens the episode by highlighting a critical week for the U.S. economy, marked by the release of numerous economic indicators:

• Consumer Confidence and Spending Figures
• GDP and Inflation Data
• Corporate Earnings
• Jobs Report

These reports are anticipated to shed light on the current state of the labor market and the broader economic landscape.

Bloomberg’s Sean Donnan provides expert insights:

"One of the things we're looking for there is are we seeing companies continue to hire, particularly in the private sector, or as a lot of economists have warned, are they just going to be kind of sitting on hiring decisions because of all the uncertainty that's created in the economy by these tariffs?"
— Sean Donnan [01:01]

Federal Reserve’s Interest Rate Decision and Legal Challenges to Tariffs

The episode further explores the impending decision by the Federal Reserve on interest rates, a move President Donald Trump is closely monitoring. Despite Trump's public frustration with Fed Chair Jerome Powell, who the President has threatened to fire over rate policies, the Fed has remained steadfast due to inflation concerns exacerbated by Trump's tariffs.

Key Points:

• Court Challenges: A federal appeals court is set to hear arguments on the legality of Trump’s tariffs, initiated under the claim of an emergency in the U.S. trade deficit.

• Potential Supreme Court Involvement: Sean Donnan suggests the case may escalate to the Supreme Court.

• New Tariff Threats: Trump has signaled the imposition of additional tariffs on nations like India, Brazil, Australia, Bangladesh, and South Korea if trade agreements are not reached by the stipulated deadline.

"We have seen this year the biggest increase in U.S. tariffs since the 1930s, and those are going to have a meaningful effect on both the price of goods here in the United States, but also economic relationships all over the world and for years to come."
— Sean Donnan [03:25]

Economic Resilience and Future Outlook

While the U.S. economy has shown resilience amid these tariff-induced challenges, concerns persist regarding potential inflation and a weakened job market. Basu emphasizes that the forthcoming economic reports will clarify the direction in which the economy is heading.

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3. IRS and ICE Data-Sharing Controversy

Unprecedented Data Access for Deportation Efforts

A significant portion of the episode is dedicated to examining the IRS’s plans to share highly confidential taxpayer data with ICE, as reported by ProPublica.

William Turton, a ProPublica reporter, explains:

"Engineers at the IRS are building a system that would then automate the disclosure of taxpayer data to ICE."
— William Turton [04:50]

Privacy Concerns and Legal Challenges

Taxpayer data is among the most securely guarded information in the U.S., protected by strict privacy laws. Historically, the IRS has resisted sharing this data, even with law enforcement agencies. However, recent developments indicate a shift:

• Leadership Changes: The IRS’s chief counsel, Andrew DeMello, initially resisted large-scale data requests but was removed from his position shortly after refusing to provide ICE with addresses of over 7 million taxpayers.

• Operational Changes: The system being developed would enable ICE to receive automatic access to taxpayer addresses, bypassing traditional verification protocols, raising the risk of significant errors.

"We don't know for sure exactly why DeMello was removed but it is fascinating because DeMello was installed into the chief counsel job and many people at IRS thought he was unqualified for the job and thought that he would be friendly to the Trump administration priorities."
— William Turton [05:53]

Potential for Errors and Legal Pushback

Former IRS officials highlight the improbability of ICE legitimately requiring data for 7 million individuals, suggesting the system's design is prone to inaccuracies. Additionally, data privacy advocates have initiated legal actions to block this data sharing, though a federal judge recently allowed it with stringent limitations:

"He's seemingly bypassing the established protocols to target individuals, which is deeply concerning."
— William Turton [07:18] (Paraphrased)

With 90 Democratic lawmakers joining the legal challenge, the controversy underscores the tension between immigration enforcement and taxpayer privacy rights.

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4. Washington Post Investigation: Volkswagen's Dark Past in the Amazon

Historical Labor Abuses Unveiled

Transitioning to international affairs, the episode covers an investigative report by The Washington Post, narrated by Terry McCoy, uncovering decades-old labor abuses by Volkswagen Brazil in the Amazon rainforest.

Terry McCoy details the situation:

"The story is really a confluence of power, greed, and religion."
— Terry McCoy [08:38]

Forced Labor and Environmental Exploitation

Under Brazil's 1960s military dictatorship, Volkswagen Brazil embarked on an ambitious project to develop the Amazon, both for cattle raising and automobile production. This endeavor led to:

• Massive Migration: Thousands of workers were brought in, many of whom faced extreme exploitation.

• Human Rights Violations: Evidence suggests forced labor, brutal beatings, and even murders, with some victims held for up to seven years without the freedom to leave.

"They were never allowed to leave."
— Terry McCoy [09:55]

Role of a Priest and Legal Proceedings

A local priest, moved by the plight of the workers, dedicated decades to compiling evidence against Volkswagen, resulting in a comprehensive 1,000-page dossier. This effort culminated in a 2019 lawsuit filed by Brazil's Labor Ministry, accusing Volkswagen of systemic human trafficking and slave labor.

Despite Volkswagen's denial and claims of indirect involvement, evidence presented has significantly undermined their defense. A federal labor court decision is imminent, marking the first major acknowledgment and legal reckoning for these historical abuses in Brazil.

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5. Additional News Highlights

Midtown Manhattan Shooting

Yesterday, a tragic shooting occurred in midtown Manhattan, resulting in the deaths of at least four individuals, including a police officer. The assailant, a 27-year-old from Las Vegas, died by suicide after carrying out the attack at a Park Avenue skyscraper housing major corporations like Blackstone and the NFL.

Humanitarian Crisis in Gaza

President Trump has acknowledged severe starvation conditions in Gaza, countering Israeli denials. Reports from Israeli human rights groups and organizations like the World Food Program and the World Health Organization indicate:

• Famine Conditions: Hundreds of thousands are experiencing life-threatening malnutrition.

• International Response: Trump has pledged collaboration with European allies to establish food centers, attributing significant responsibility to Israel for the crisis.

Minnesota's Social Media Mental Health Warnings

Starting next year, Minnesota will implement the first-ever digital warnings on social media platforms, alerting users to potential mental health risks. Key features of this legislation include:

• Mandatory Acknowledgment: Users must actively acknowledge the warnings before accessing their feeds.

• Resource Provision: Platforms must offer resources such as hotlines for mental health support.

Governor Tim Walz signed the law, though tech companies are anticipated to challenge its implementation.

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6. Upcoming Narratives and Closing Remarks

Basu concludes by informing listeners about an upcoming narrated article by the San Francisco Chronicle, which examines the aging population in the Bay Area. As the region becomes the third oldest among the 20 largest U.S. regions, the article explores potential impacts on housing, healthcare, education, and social services.

Listeners are encouraged to access these stories and more through the Apple News app, ensuring they stay informed on evolving national and global issues.

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For a comprehensive understanding of these topics and more, tune into Apple News Today and explore the latest updates on pressing matters shaping our world.

Transcript

[Shemitah Basu]

Good morning. It's Tuesday, July 29th. I'm Shemitah Basu. This is Apple News today. On today's show, inside the data deal between the IRS and ice, allegations of a car company's dark history in the Amazon and the priest who brought it to light. And the first state to introduce health warnings for social media. But first, it's a critical week for the US Economy. A flood of economic data is coming. New consumer confidence and spending figures, major reports on gdp, inflation data, corporate earnings, and a new jobs report will offer a glimpse into the state of the labor market. Bloomberg's Sean Donnan told us these will provide a clearer picture of the impact of President Trump's sweeping tariffs, which he started to ramp up in earnest back in April.

[Sean Donnan]

One of the things we're looking for there is are we seeing companies continue to hire, particularly in the private sector, or as a lot of economists have warned, are they just going to be kind of sitting on hiring decisions because of all the uncertainty that's created in the economy by these tariffs?

[Shemitah Basu]

And it'll be a big week for policy decisions. The Federal Reserve will announce its next interest rate decision tomorrow. Trump will be closely watching. He's expressed frustration that Fed Chair Jerome Powell hasn't lowered rates and has repeatedly threatened to fire Powell, even though he doesn't have the legal authority to do so. The Fed has been reluctant to lower rates over concerns about how Trump's tariffs could drive up inflation. Then on Thursday this week, a federal appeals court will hear oral arguments in a lawsuit challenging the legality of Trump's tariffs.

[Sean Donnan]

He's claimed that there's an emergency in the U.S. trade deficit and that that gives him the authority to impose these tariffs. Now, that's been challenged by a group of small businesses, including a wine import and a toy company. And they actually won their challenge at the what's known as the Court of International Trade, but that's now been appealed.

[Shemitah Basu]

Donen says the case could very likely go all the way to the Supreme Court. But even as that's happening, the president has threatened new tariffs on a number of trading partners if they don't agree to deals with a deadline of this Friday.

[Sean Donnan]

And there's some big ones that are still out there that are meaningful in terms of the volume of trade and their importance to American consumers because of the goods that come from there, like.

[Shemitah Basu]

India, Brazil, Australia, and Bangladesh, which has a big textile industry that exports to the U.S. also South Korea.

[Sean Donnan]

South Korea is home to Samsung, smartphones, a lot of consumer technology products. It also has a big chips industry. It also has a big auto industry that exports to the United States.

[Shemitah Basu]

These countries could still reach agreements with the US Before Trump's deadline, as we just saw the European Union do over the weekend. But Donen says it's all but certain Trump raises tariffs on their imports to some degree. For example, he originally threatened the EU with a 30% tariff, and the recent framework deal settled on a 15% tariff for most products.

[Sean Donnan]

And I think this is something we need to remind ourselves of over and over again. We have seen this year the biggest increase in in U.S. tariffs since the 1930s, and those are going to have a meaningful effect on both the price of goods here in the United States, but also economic relationships all over the world and for years to come.

[Shemitah Basu]

So far, the economy has appeared pretty resilient to these major changes, but plenty of economists remain concerned about the risk of inflation or a weakened job market. By the end of this week, we should have a much clearer picture what kind of economic direction we're heading in. Let's turn now to how the Trump administration is upending privacy norms to change how government agencies operate to carry out its immigration agenda. We've previously highlighted reporting from NPR about an effort from DOGE and the Department of Homeland Security to build out a national citizenship database. And the Associated Press previously reported that the administration was giving ICE access to data of millions enrolled in Medicaid. Now ProPublica reports that the IRS is working on a program that would provide an unprecedented level of confidential information to deportation officers.

[William Turton]

Engineers at the IRS are building a system that would then automate the disclosure of taxpayer data to ICE.

[Shemitah Basu]

William Turton is one of the ProPublica reporters who got their hands on blueprints of this system.

[William Turton]

It's important to understand that taxpayer data is among the most confidential data held by the US Government. There's extremely strict privacy laws that protect it from disclosure, even to law enforcement agencies.

[Shemitah Basu]

In fact, it is so closely guarded that the IRS resisted previous efforts from DOGE to get access to taxpayer data. The agency's chief counsel was removed from his role earlier this year and replaced by Andrew DeMello, who was seen by Trump administration officials as being more willing to enact elements of the president's agenda. Yet ProPublica reports that last month, DeMello refused to turn over the addresses of more than 7 million taxpayers sought by ICE, saying the request did not meet specific legal guardrails that safeguard private taxpayer information. Two days later, he was removed from his job.

[William Turton]

We don't know for sure exactly why demelo was removed but it is fascinating because demello was installed into the chief counsel job and many people at IRS thought he was unqualified for the job and thought that he would be friendly to the Trump administration priorities.

[Shemitah Basu]

He wasn't the only one to leave. Melanie Kraus, the IRS's acting commissioner, reportedly resigned over the data sharing deal. There is an established process for law enforcement to seek IRS data to support active criminal investigations. Former irs officials told ProPublica that in the past, law enforcement officials would present full explanations for why the information was necessary. And those requests typically involved fewer than a dozen people at a time, not millions, as was requested recently. One former IRS official who'd been advising the agency on this issue told ProPublica there's no way ICE has 7 million real criminal investigations. According to ProPublica, the system that the IRS is now building would give ICE automatic access to home addresses, bypassing traditional protocols and opening the door to serious errors. Essentially, DHS would send the IRS a spreadsheet of people it's targeting for deportation, including their previous addresses. The IRS system would then try to match that information with a specific taxpayer record, and if there's a match, it pulls that person's most recent address.

[William Turton]

We showed the technical blueprints to people familiar with IRS data, familiar with IRS systems, who said that this system is almost guaranteed to make mistakes. That because because of the way that ICE submits data and it gets searched through IRS systems, it's extremely likely that the irs, if using the system, could return the wrong address to ice, leading to an ICE raid on the wrong address.

[Shemitah Basu]

Turton reports that engineers are still working on the system, but they hope to roll it out soon. A spokesperson for the White House told ProPublica that the planned use of IRS data is legal and part of fulfilling a campaign promise on immigration. Meanwhile, data privacy advocates took the government to court, and a federal judge refused to block the IRS from sharing the data. But in its ruling, it did make clear that ICE could only request the information in specific targeted circumstances. Advocates are now appealing that judgment, and 90 Democratic lawmakers have joined with a similar request to the court. Now to a Washington Post investigation about one man's efforts to hold a major carmaker accountable for allegedly abusing workers in Brazil for years.

[Terry McCoy]

The story is really a confluence of power, greed, and religion.

[Shemitah Basu]

Terry McCoy is the Rio de Janeiro bureau chief for the Washington Post. Back in the 1960s, Brazil's military dictatorship wanted to expand development in the Amazon rainforest, and it wanted global corporations to help bankroll those plans. Sensing an opportunity, Volkswagen Brazil, which At the time was the largest carmaker in Latin America, decided they could be giants in both cattle and cars.

[Terry McCoy]

They got into this sort of seemingly quixotic plan, which was to deforest the Amazon and then raise cattle where the forest had been. The Volkswagen farm brought in masses of workers and laborers from all over the country to work in this place. And now Brazilian prosecutors are saying many of these workers, hundreds, were ensl. And this has really only come to light as a result of a priest who has maintained these records for decades.

[Shemitah Basu]

Volkswagen promised these workers good pay and the opportunity for a better life. But many say they were forced to work and brutally beaten by the contractors who ran the farm. One man said he spent seven years there and was never allowed to leave.

[Terry McCoy]

And there was allegedly a cave on the property where people were killed and their bodies were dumped. Some people were successfully escaped. Other people apparently did not. And so it's a shadow that haunts these workers to this day. And old men during these interviews were weeping, crying about what they had gone through 40 years ago on this property.

[Shemitah Basu]

State authorities found evidence of forced labor on the farm four separate times. But the Post couldn't find any records of charges filed against the operators of the farm. As its reputation grew, a local priest became increasingly concerned. He tried to raise the alarm to authorities at the time, but got nowhere. So he started collecting evidence.

[Terry McCoy]

He started building this massive dossier of all the people he was interviewing, of all the newspaper clippings, the reports that are coming out about this place. And it grew and it grew and it grew, and to the point where now it exceeds 1,000 pages.

[Shemitah Basu]

He identified at least 69 potential victims. And in 2019, he contacted a prosecutor who works on slave labor cases for Brazil's Labor Ministry. He shared his dossier, and last year, prosecutors filed a lawsuit accusing Volkswagen of exploiting slave labor and human trafficking on a systemic scale.

[Terry McCoy]

This is the first time that Brazil is moving to account for what had occurred, which were at that era, extraordinary, horrendous human rights abuses that. That are virtually unknown to the outside world and are virtually unknown to Brazilians themselves.

[Shemitah Basu]

Volkswagen has denied the allegations, and in court, they've argued they were just a shareholder in the farm, that a separate company owned it and was responsible for hiring the contractors who ran it. McCoy says evidence presented to the ministry disproves that. A decision is expected from a federal labor court any day now. Before we let you go, a few other stories we're following. In New York, at least four people, including a police officer, were reportedly killed in a shooting in midtown Manhattan yesterday. The alleged gunman, initially identified as a 27 year old from Las Vegas, also died from a self inflicted gunshot wound. He reportedly walked into a Park Avenue building with a long rifle and opened fire. Authorities say he acted alone. The skyscraper is the headquarters of several major corporations, including Blackstone and the NFL. President Trump has acknowledged there is real starvation taking place in Gaza, contradicting the denials from Israel. And for the first time, two Israeli human rights groups say that Israel is committing genocide in Gaza. The World Food Program says hundreds of thousands are living in famine like conditions and the World Health Organization has described a marked spike in malnutrition related deaths. Trump said Israel bears a lot of responsibility for the food scarcity and pledged to work with European allies to set up food centers. And NPR reports that starting next year, any Minnesotan using a social media app will get a digital warning label telling them about the potential dangers to their mental health. In a first in the Nation move, users in the state will have to click through an acknowledgment before their daily scroll. Platforms will also have to provide resources like hotlines to support support people struggling with mental health. Governor Tim Walz signed the law to start this time next year, but companies say they will be pushing to have it rolled back. You can find all these stories and more in the Apple News app. And if you're already listening in the News app right now, we've got a narrated article coming up next. The San Francisco Chronicle looks at how the Bay Area is graying. It's the third oldest among 20 of the largest regions in the US and it's growing older faster than any of them. The paper examines what that'll mean for housing, healthcare, education and social services in years to come. If you're listening in the podcast app, follow Apple News plus Narrated to find that story. And I'll be back with the news tomorrow.