Millions of people who are not legally present in the U.S. pay taxes using Individual Taxpayer Identification Numbers (ITINs). The IRS has agreed to share taxpayer information, including addresses, with Homeland Security to help locate undocumented immigrants and assist in enforcing immigration laws. This policy has raised concerns among immigrant advocacy groups, who fear a chilling effect that could deter immigrants from paying taxes.
The agreement allows Immigration and Customs Enforcement to obtain information about individuals under criminal investigation, raising worries about potential misuse of taxpayer data. Despite the changes appearing focused on criminal enforcement, there are concerns about the impact on working immigrants.
Households of undocumented immigrants paid nearly $90 billion in taxes in 2023, according to the American Immigration Council. In response to the agreement, two Chicago area not-for-profit organizations representing immigrant communities and workers have sued the Treasury Department to prevent disclosing sensitive information of taxpayers who file ITINs to the IRS.
The Congressional Hispanic Caucus has urged the Treasury Department to protect taxpayer information and reject the use of ITINs for immigration enforcement. They argue that the IRS has no legal authority to use its data for immigration enforcement and any efforts to do so would violate federal law.
Overall, the agreement between the IRS and Homeland Security raises concerns about privacy, the integrity of the tax system, and the potential harm to vulnerable communities, the economy, and the broader U.S. population.
