Overview

• The IRS is reportedly close to finalizing an agreement with ICE to share taxpayer data of undocumented immigrants who file taxes using ITINs.
• The deal would allow ICE to cross-reference IRS data to verify the names and addresses of individuals suspected of being in the U.S. illegally.
• Critics, including Democratic lawmakers and privacy advocates, warn the agreement could deter undocumented immigrants from filing taxes, reducing federal revenue and violating privacy laws.
• Undocumented immigrants contributed approximately $60 billion in federal taxes in 2022, and experts fear the agreement could push many into informal, cash-based economies.
• The Trump administration has prioritized deportations as part of its broader immigration agenda, with this proposed data-sharing deal representing a significant shift in federal agency collaboration.