The Internal Revenue Service (IRS) is reportedly close to finalizing a data-sharing agreement with U.S. Immigration and Customs Enforcement (ICE), a move that could significantly impact immigration enforcement efforts under the Trump administration. Sources familiar with the negotiations revealed that the agreement would grant ICE access to confidential taxpayer information to help identify and locate undocumented immigrants.
If approved, the deal would allow ICE to submit names and addresses of suspected undocumented immigrants for verification against the IRS’s private tax records. The Washington Post first broke the story, reporting that discussions between the two agencies have been ongoing for weeks.
Concerns Over Confidentiality and Legal Protections
The prospect of using sensitive tax data for immigration enforcement has raised alarms among career officials within the IRS. Under Section 6103 of the federal tax code, taxpayer information is strictly protected, with only limited exceptions for law enforcement agencies conducting non-tax-related criminal investigations—requiring court approval.
Immigrants without legal status have long been permitted to file tax returns using Individual Taxpayer Identification Numbers (ITINs), contributing billions to the U.S. economy. According to the Bipartisan Policy Center, these individuals paid approximately $25.7 billion in Social Security taxes through borrowed or fraudulent Social Security numbers.
Awaiting Official Confirmation
Despite the potential implications, both the IRS and the Department of Homeland Security have declined to comment on the ongoing negotiations. The agreement has yet to be finalized, and it remains unclear whether legal challenges could arise over the use of taxpayer data in immigration enforcement.
As the discussions progress, the agreement’s impact on both tax confidentiality and immigration policies will likely draw further scrutiny from lawmakers and advocacy groups.
Keep up with this developing story with us on Que Onda Magazine.