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Under federal law:
Unauthorized sharing of taxpayer data is a criminal offense
Potential penalties include fines, imprisonment, and civil liability
Any deviation from statutory exceptions must be explicitly authorized by Congress
The Acting IRS Chief’s refusal prevents legal exposure for both himself and the IRS institution.
Step 11: Lessons for Policymakers
Policymakers should note:
Implementing cross-agency data sharing requires statutory authorization
Privacy protections must not be circumvented for policy convenience
Transparency and legislative oversight are crucial for maintaining institutional trust
The episode underscores the importance of legally grounded policymaking.
Step 12: Implications for Immigration Policy
Using IRS data for immigration enforcement presents challenges:
May discourage voluntary tax compliance among undocumented individuals
Could create distrust in federal institutions
Raises questions about civil liberties and constitutional protections
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Policymakers must weigh enforcement objectives against potential unintended consequences.
Step 13: The Broader Ethical Debate
The resignation highlights key ethical questions:
