The Internal Revenue Service (IRS) and Immigration and Customs Enforcement (ICE) are nearing an agreement allowing the IRS to share taxpayer data with immigration authorities.
- Under the agreement, ICE or the Department of Homeland Security (DHS) could provide the IRS with the names and addresses of immigrants who have suspected criminal violations and ask if they match tax records.
- The IRS would be able to respond yes-or-no to DHS or ICE’s questions.
Taxpayer information is considered confidential, and unlawfully disclosing tax data carries civil and criminal penalties.
Background
Data sharing between ICE and the IRS represents a significant shift in the cooperation between the two agencies. The shift could reduce tax compliance as undocumented immigrants could be less likely to file taxes. For decades, the IRS has encouraged undocumented immigrants to comply with tax law by issuing individual taxpayer identification numbers to those who lack a Social Security number.
Erickson Insights and Analysis
Experts argue that IRS data would allow ICE to build enforcement cases against work sites if undocumented immigrants list their place of employment on their tax returns. Immigrant rights groups have sued the Trump administration to block it from sharing taxpayer data with immigration enforcement.
Erickson Immigration Group will continue to monitor developments and share updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or case-specific questions.