A Dilemma for Immigrants Before Filing Taxes: What We Know and What to Expect by lauren eagan
We are in the middle of tax filing season, a time that has traditionally represented an opportunity for millions of immigrants, even those without regularized immigration status, to comply with their tax obligations using an Individual Taxpayer Identification Number (ITIN). However, the recent news about collaboration between the Internal Revenue Service (IRS) and Immigration and Customs Enforcement (ICE) has raised alarm in immigrant communities.
What do we know so far? According to news reports, the Trump administration has negotiated an agreement between the IRS and ICE that would allow the IRS to verify the addresses of people with deportation orders. Unlike previous requests that sought direct release of information, the agreement appears to be limited to confirming addresses that ICE already holds. For years, the IRS has incentivized undocumented immigrants to comply with their tax obligations through the ITIN, a nine-digit code that allows someone to file returns without a Social Security number. This information has been protected by strict federal confidentiality laws, and previously, IRS officials had resisted turning over this data to the Department of Homeland Security, citing possible legal violations. However, following the change of the IRS’s top lawyer by the current administration, the new agreement has been negotiated, according to press reports. Additionally, there are reports that the Department of Homeland Security has attempted to involve the IRS in audits targeting businesses that may be hiring unauthorized immigrants.
What can we expect? If this agreement materializes, we could be facing a significant change in the use of confidential tax information. While the agreement appears to be limited to confirming addresses of people with existing deportation orders, this could represent only the beginning of a broader collaboration between prosecutorial and immigration agencies. For immigrants, this situation poses a complex dilemma. On the one hand, compliance with tax obligations has traditionally been considered a positive factor in migratory regularization processes. On the other hand, there are now fears that this same information could facilitate deportation proceedings. If the collaboration is finalized, the risk of being located increases significantly for those who have outstanding deportation orders. For other immigrants in an irregular situation, but without deportation orders, the immediate threat could be less, although the precedent is worrying. The right to tax privacy and compliance with tax obligations should not become tools to facilitate mass deportations. But we are facing a new chapter in the complex relationship between fiscal and immigration policies in the United States, which we do not know how it will be resolved. In the meantime, my advice is always that immigrants should consult with immigration attorneys to assess their particular situation and determine the best next steps.
Lauren Eagan, named to the 2025 edition of America®’s Best Lawyers for Immigration Law, is the founder and CEO of Eagan Immigration. https://eaganimmigration.com/
