In a policy shift that could affect millions of immigrants, the Internal Revenue Service (IRS) has agreed to share taxpayer information with Immigration and Customs Enforcement (ICE) to assist in deportation efforts. This unprecedented agreement, formalized on Monday, represents a fundamental change in how the traditionally independent tax agency handles confidential taxpayer data.
The Agreement: What We Know
According to court records, the agreement allows ICE officials to request information from the IRS about individuals who have been ordered to leave the United States or who are under investigation. This information could include home addresses, earnings data, and family details that immigrants have provided when filing taxes.
As reported by The New York Times, “Federal law tightly controls taxpayer information, protecting home addresses, earnings and other data from disclosure even to other agencies within the government.” The agreement appears to rely on an exception in tax law that permits sharing information for criminal investigations.
Legal and Ethical Concerns
The Trump administration’s plan has raised significant legal concerns, even within the IRS itself. Internal officials had previously warned that such information sharing could violate federal law that strictly protects taxpayer confidentiality. In what appears to be related to this policy change, the top IRS lawyer was recently demoted and replaced by a former Trump nominee as the agreement was being finalized.
Nina Olson, executive director of the Center for Taxpayer Rights and former top IRS official, described the move as “unprecedented,” highlighting the extraordinary nature of this policy shift.
Potential Impact on Immigrant Communities
For years, the IRS has encouraged undocumented immigrants to file tax returns using Individual Taxpayer Identification Numbers (ITINs), nine-digit codes that allow people without Social Security numbers to comply with tax laws. Millions of undocumented workers contribute billions to federal programs like Social Security through this system.
Immigration advocates and tax experts have long assured immigrants that their tax information would remain confidential. This new information-sharing agreement undermines that trust and could have several consequences:
- Decreased tax compliance as immigrants fear their information could lead to deportation
- Growth in under-the-table employment
- Reduced tax revenue for federal programs
- Damaged trust between immigrant communities and government institutions
Current Status
As of the court filing, the Trump administration stated that no information has yet been shared between the agencies. Immigration advocacy groups have filed lawsuits to block the implementation of this agreement, and the legal battles are likely to continue.
What This Means for Immigrants
If you’re an immigrant concerned about your tax information:
- Consult with an immigration attorney about your specific situation
- Know that legal challenges to this agreement are ongoing
- Understand that as of the court filing, no information has yet been shared between the agencies
- Be aware that this represents a significant change in federal policy regarding tax information confidentiality
Boundless will continue to monitor this developing situation and provide updates as more information becomes available.
This article provides general information and does not constitute legal advice. For specific guidance regarding your immigration situation, please consult with a qualified immigration attorney.