IRS May Share Undocumented Workers’ Information with ICE

The US Internal Revenue Service (IRS) has long assured undocumented workers that they can file taxes without fear of deportation. However, this promise may no longer be valid. According to a report by the Washington Post, the IRS is close to finalizing a deal with Immigration and Customs Enforcement (ICE) that would allow the sharing of previously private personal information.

The proposed agreement would enable ICE to request names and addresses of suspected undocumented immigrants from the IRS. The IRS would then verify this information against its confidential taxpayer databases. The agreement would reportedly only apply to immigrants who have already been ordered to leave the country, which is a narrower scope than the Trump administration’s previous requests. Nevertheless, this deal would still be a significant departure from current practices and could be used to facilitate the Trump administration’s mass deportation campaign.

Why the IRS Doesn’t Typically Share Taxpayer Information

There are two primary reasons why the IRS does not typically share taxpayer information. Firstly, it is against the law to disclose any taxpayer information, except in rare cases where a court order is obtained beforehand. The IRS has a strict policy of not sharing taxpayer information, including basic details such as names and addresses. Secondly, the IRS has long encouraged undocumented workers to file taxes by promising that their information would not be shared with law enforcement. As a result, undocumented workers have paid significant taxes, with estimates suggesting that they contributed $100 billion in 2022. However, they are not eligible for benefits like the earned income tax credit, Social Security retirement benefits, or health insurance through Medicare.

According to the Tax Policy Center, an immigrant who arrives in the US at 25 years old will pay $200,000 more in taxes than they will receive in government benefits. The Trump administration has been pushing for the IRS to share data on undocumented workers to aid in its deportation efforts. Last month, the Department of Homeland Security (DHS) requested the IRS to share the addresses of 700,000 suspected undocumented immigrants, which the IRS declined. However, this led to the IRS opening negotiations for a narrower data-sharing deal that would not violate tax privacy laws.

Legal Challenges and Concerns

While legal challenges have been filed to prevent the IRS from sharing information for immigration enforcement purposes, a federal judge recently rejected a motion to block such an agreement. Several Democratic Senators have expressed concerns about this development, but their efforts have generated little resistance so far. Meanwhile, the DHS has shut down its internal watchdog agencies that advocate for immigrants, raising further concerns about the impact of this deal.