This removal stemmed from controversies regarding the tracking of illegal aliens in the U.S. using sensitive information.

The issue began when the Department of Homeland Security (DHS) provided the IRS with a list of around 40,000 individuals believed to be in the U.S. illegally, requesting address verification using confidential taxpayer data.

Challenges in address verification emerge

Billy Long, appointed by President Donald Trump in December 2024, had consistently highlighted the importance of safeguarding taxpayer confidentiality.

He had committed to both the IRS and DHS that his agency would not breach its data-sharing agreements.

The verification process proved problematic as the IRS confirmed less than 3% of the addresses sent by DHS. Only those individuals with an Individual Taxpayer Identification Number (ITIN) could have their addresses validated, a number used by immigrants in place of Social Security numbers.

It is important to note that undocumented immigrants contribute significantly to federal taxes annually using ITINs.

Expanded collaboration between Treasury, DHS

In April, before these issues escalated, the Treasury Department and DHS initiated a policy to allow U.S. Immigration and Customs Enforcement (ICE) to locate illegal aliens using their tax records for potential deportation.

A memorandum facilitating this policy was signed by Treasury Secretary Scott Bessent and DHS Secretary Kristi Noem.

The policy specified that only Noem or ICE Director Todd Lyons could initiate tax information requests concerning illegal aliens facing deportation.

This agreement placed the IRS, under Long's directorship, at a controversial nexus between maintaining tax confidentiality and adhering to federal immigration enforcement directives.

Leadership transition, future considerations

Following the removal of Billy Long, Bessent has been appointed the interim leader of the IRS, as reported by multiple sources to NBC News. '

This change highlights ongoing challenges in managing sensitive taxpayer data in relation to immigration enforcement efforts.

Long's departure signals a potentially shifting approach to how tax and immigration enforcement agencies share information.

The IRS, amid this leadership transition, faces scrutiny concerning how to balance taxpayer privacy with national security demands in an immigration context.

Implications for data privacy

This incident highlights the ongoing challenges and responsibilities associated with managing sensitive taxpayer information in light of conflicting governmental priorities.

The IRS has a major role to play in the safe handling of personal and confidential data, and the agency is now thrust into the forefront of a contentious debate over privacy limits. The development of these events will be crucial for maintaining public trust in this vital institution.

The removal of Long exemplifies the intense and politically sensitive nature of leading the IRS, particularly in an era where immigration concerns are intensely political.