The Internal Revenue Service (IRS) is reportedly on the verge of finalizing a controversial agreement with the Department of Homeland Security (DHS) aimed at locating migrants suspected of residing in the United States illegally. This development comes as President Donald Trump intensifies his hardline approach to deportations. Sources familiar with the discussions reveal that the agreement would mandate the Immigration and Customs Enforcement (ICE) to send names and addresses of individuals it suspects are living in the country without legal status to the IRS for verification.
In a significant departure from its traditional practices, the IRS would cross-reference the submitted names and addresses, thereby confirming the residency status of these individuals. Historically, the IRS has maintained strict confidentiality regarding taxpayer information, as mandated by law, which prohibits the unauthorized disclosure of such data. This confidentiality is particularly relevant given that the IRS has actively encouraged undocumented migrants to file taxes, a process that necessitates providing their personal details, including addresses, employers, and earnings.
Earlier this year, reports surfaced that the DHS had circulated a draft memorandum requesting extensive information about suspected undocumented immigrants, including the home addresses of hundreds of thousands of individuals who have paid federal taxes using their Individual Taxpayer Identification Numbers (ITINs). Privacy advocates have voiced serious concerns, arguing that the proposed data sharing would violate the stringent disclosure laws governing IRS operations.
The draft agreement, as described by sources, appears to be a more limited version of the initial proposal. Under the revised framework, the IRS would verify the addresses of the migrants but would not directly provide this information to ICE. However, this change still represents a significant shift in the agency's operational policies. Requests for information would need to be submitted by high-ranking officials, such as DHS Secretary Kristi Noem or acting ICE Director Todd Lyons. These requests must include the taxpayer's name, address, and the date of their removal order, which would enable the IRS to confirm the relevant details.
In response to these developments, two immigrant rights organizations based in Chicago have filed a lawsuit against the Treasury Department and the IRS. They are seeking judicial intervention to prevent the agency from sharing taxpayer identifying information with ICE or DHS, particularly as the Trump administration pushes for increased deportations. The plaintiffs argue that federal law explicitly prohibits the IRS from disclosing this data to immigration authorities, as ICE and DHS are not recognized as exceptions under the confidentiality provisions of the tax code.
The potential implications of this agreement between the IRS and DHS are vast and multifaceted. If enacted, it could lead to significant changes in how undocumented immigrants interact with the tax system, heightening fears among many about potential repercussions. As the situation evolves, it remains crucial for taxpayers and immigrant advocacy groups to monitor these developments closely, as they could redefine the landscape of tax compliance and immigration enforcement in the United States.
