IRS to share info with ICE about some undocumented immigrant taxpayers

Importance Score: 75 / 100 🔴

IRS to Share Tax Data of Undocumented Immigrants with ICE, DHS Reveals

In a recent court filing, the Department of Homeland Security (DHS) disclosed that the Internal Revenue Service (IRS) has consented to furnish specific tax information pertaining to undocumented taxpayers to Immigration and Customs Enforcement (ICE). This data sharing agreement marks a reversal of previous IRS policies and has sparked legal challenges and concerns about immigrant privacy.

Details Emerge in Court Document

The revelation of this accord was made public through a document submitted late Monday in connection with a legal challenge against the IRS’s practice of exchanging tax details with other government bodies. While the filing contained redactions in crucial sections, it nonetheless confirmed the existence of the information sharing arrangement.

Legal Challenge and Reaction

Alan Morrison, legal counsel at Georgetown School of Law and advisor in the aforementioned lawsuit, commented on the development, stating, “There is an agreement that calls for information sharing, which is a reversal of what IRS said in the past it would not share.” Lawyers involved in the case are advocating for the DHS to submit an unredacted version of the document to fully understand the scope and implications of the agreement.

DHS Seeks Tax Data for Immigration Enforcement

The DHS has reportedly been pursuing access to tax filing data to identify individuals residing in the U.S. without authorization, aligning with previous administration’s initiatives focused on enhanced deportation efforts. This move raises concerns among advocates for immigrant rights and privacy.

Tax Contributions by Undocumented Immigrants

It’s important to note that many non-documented individuals contribute significantly to the U.S. tax system, utilizing taxpayer identification numbers to file returns. The Institute on Taxation and Economic Policy estimates that undocumented immigrants paid approximately $96.7 billion in federal, state, and local taxes in 2022 alone. Of this sum, an estimated $59.4 billion went to the federal government, and $37.3 billion to state and local coffers, according to their analysis.

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IRS Previously Shielded Taxpayer Information

Historically, the IRS has maintained a strict policy against disclosing personal taxpayer information, especially concerning immigration status. Releasing such data is generally prohibited by law, and the IRS has traditionally resisted sharing the identities of undocumented taxpayers with other agencies.

Exceptions for Criminal Investigations

However, legal statutes do stipulate certain exceptions to this confidentiality. These exceptions permit the disclosure of information for investigations unrelated to tax matters, particularly those involving alleged or suspected violations of federal criminal law.

Scope of the Agreement Questioned

Morrison indicated that, based on available information, “so far as we can tell,” the newly established agreement appears to be confined to this exception for criminal investigations. However, skepticism remains about the true objectives behind this data sharing initiative.

Concerns Over Location Tracking

“We are challenging whether they can share the information (by) trying to claim exception for criminal investigations,” Morrison elaborated. “But we think what they really want is location information, and you need a court order for that.” This raises concerns that the tax data may be used for broader location tracking purposes beyond legitimate criminal investigations.

Political Pressure and Leadership Changes at IRS

Prior to this agreement, IRS officials had reportedly resisted divulging taxpayer information. However, recent changes in agency leadership, with appointments considered more amenable to information sharing plans, have coincided with this shift in policy, fueled by pressure from the previous administration.

Redactions Obscure Full Impact

Morrison highlighted the timing and redactions of the DHS filing, stating, “The government filed this at 11:10 last night. We have three days to respond. They hatched the agreement that they say is complete, but it is significantly redacted. It is impossible to tell what the impact is without knowing more.” The redactions make it difficult to fully assess the implications of the agreement.

Transparency Demands

Expressing frustration with the lack of transparency, Morrison questioned, “I couldn’t figure out what kind of words were missing … How can we possibly know what they are doing if we have not seen this?” He emphasized the need for a clear and complete document to understand the full extent of the data sharing arrangement.

DHS Declines to Comment

The Department of Homeland Security has not yet responded to requests for comments or clarifications regarding the redacted portions of the agreement, further fueling concerns about transparency.

ICE Request Requirements

According to the DHS court filing, ICE requests to the IRS must include specific details: the name and address of the individual, relevant tax periods, the federal criminal statute under investigation, and justification for why the tax information is pertinent to the non-tax-related criminal investigation.

Crimes Under Investigation

Morrison mentioned that the DHS has cited two potential criminal categories that could legitimize IRS information sharing with ICE. However, the specific crimes and whether there are identified individuals suspected of committing these offenses remain undisclosed. Such details are reportedly necessary to justify the information requests.

No Pending Requests Initially

“One thing they said, so far at least as of yesterday, there were no pending requests for this information, and if they do request it, they have to go through some processing,” Morrison noted, suggesting that the agreement may be in place but not yet actively implemented.

Lengthy Deliberation Preceded Agreement

The culmination of this agreement follows months of internal discussions within the IRS and external pressure from the administration, reflecting a determined push for this data sharing capability.

Immigrant Community Concerns

This agreement is expected to generate heightened apprehension within immigrant communities. Many have diligently paid taxes for years to demonstrate compliance with U.S. laws and to safeguard any future prospects for legal residency. The prospect of their tax information being used for immigration enforcement raises significant anxieties.

Congressional Response

Rep. Gomez Expresses Opposition

Rep. Jimmy Gomez, a Democratic Congressman from California and a member of the House Ways and Means Committee, which oversees tax matters, released a statement expressing strong disapproval. “The IRS should never be weaponized to target immigrant families,” Gomez asserted. “No one should fear that filing their taxes puts their family at risk.” Gomez, whose parents immigrated from Mexico, pledged to challenge the measure through his position on the committee.


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