The Internal Revenue Service (IRS) is close to finalizing an agreement with Immigration and Customs Enforcement (ICE) to provide taxpayer data for immigration enforcement. Under this deal, ICE would submit names and addresses of individuals suspected of being in the U.S. illegally, and the IRS would verify their locations using its confidential databases.
This marks a major shift in IRS policy, as the agency has traditionally protected taxpayer information, including that of undocumented immigrants who file taxes using Individual Taxpayer Identification Numbers (ITINs). Critics argue that this could discourage tax compliance among undocumented workers, reducing billions in annual tax contributions and raising concerns about privacy violations.
The proposed agreement is part of broader immigration enforcement efforts by the current administration. However, it has sparked debate over the balance between national security and protecting taxpayer confidentiality. Legal and ethical challenges could complicate the deal’s implementation.