The Internal Revenue Service (IRS) is reportedly on the verge of finalizing a controversial data-sharing agreement with the U.S. Immigration and Customs Enforcement (ICE). This agreement would grant immigration officials access to tax data to bolster the Trump administration's deportation agenda. According to two sources familiar with the negotiation process, this agreement is in its final stages, potentially allowing ICE to submit the names and addresses of individuals suspected of lacking legal immigration status for the IRS to verify against its confidential databases.
The potential use of sensitive taxpayer information to advance the Trump administration's immigration policies has raised alarm among career officials within the IRS. The federal tax code, specifically Section 6103, mandates that the IRS maintain strict confidentiality regarding individual taxpayer information, with few exceptions. These exceptions include sharing information with law enforcement agencies for the investigation and prosecution of non-tax-related criminal laws, provided there is court approval, as outlined on the agency's official website.
It is important to note that the IRS has permitted immigrants without legal status to file income tax returns using Individual Taxpayer Identification Numbers (ITINs). These individuals have significantly contributed to the U.S. economy, reportedly paying approximately $25.7 billion in Social Security taxes using borrowed or fraudulent Social Security numbers, according to a study by the Bipartisan Policy Center. This highlights the complex dynamics of immigration and tax contributions in the United States.
As of now, both the IRS and the Department of Homeland Security (DHS) have declined to comment on the status of the agreement. The negotiations are still ongoing, and no final decisions have been made, according to the sources. The implications of this agreement could have significant effects on immigrant communities and the use of taxpayer information moving forward.
