‍What's happening?

On April 8, 2025, it was widely reported that DHS and IRS reached an agreement via a memorandum of understanding (MOU). A redacted copy of the MOU has been released, which was filed as part of the lawsuit referenced below. The MOU, dated April 7, specifies the legal basis under which the IRS can share taxpayer information in connection with a criminal charge or investigation of possible “nontax Federal criminal statutes”. Specifically referenced is the law regarding the penalties for “failure to depart” when an order of removal has been issued.

The requests would verify the most recently known information about the taxpayer, presumably their home address, phone number or other identifying information that could assist in apprehension and removal proceedings.

This development represents a serious escalation of risk for immigrant taxpayers. Any taxpayer without legal status may now be at risk of having their tax information shared with ICE—not only if they have a removal order, but also under vague justifications like investigating “nontax federal crimes,” raising serious concerns about potential fishing expeditions that could lead to more violations of data protection.

The announcement of collaboration between the IRS and DHS is extremely dangerous. It reflects a continued drive to persecute immigrants, and also represents a political move that jeopardizes the legal obligation of the IRS to protect taxpayers. 

In 1976, Congress amended Section 6103 of the Internal Revenue Code to establish that federal tax returns and return information are confidential by default, “unless a statute expressly authorizes their disclosure”.  This limits the authority of the executive branch to acquire such information. This change was in response to President Nixon's misuse of tax return information. Now, a group of organizations is suing to block ICE from accessing this information. 

‍Why is this happening? 

It's very clear that Trump is unsatisfied with the failure of his vindictive plan of mass deportations. He has set a daily quota of arrests ICE agents must make and have been unable to fulfill thanks to the tremendous efforts of community organizations to ensure communities know their rights to protect themselves from ICE's deceptive tactics. The use of IRS resources to support immigration enforcement priorities and the recently announced registry requiring individuals with irregular status to register with the federal government are desperate attempts to coerce our communities to give in to fear.

‍Communication to communities

• Pending implementation of an MOU between the IRS and ICE means that all taxpayers, regardless if they file with an SSN or ITIN, may soon face the risk of having their personal information shared with ICE.
• Immigrants who hold a current ITIN number, have been filing taxes, and who have not changed their address since their last filing should know that the IRS has historical records of previous tax filings that already contain personal information. 
• If you have a different mailing address from the last one that was submitted, you should speak with a tax professional or seek legal advice to make an informed decision about filing 2024 returns.
• Potential collaboration of IRS with DHS would mean a dangerous risk for individuals who are applying for a new ITIN number. Individuals looking to apply for an ITIN number should be aware that this would mean submitting their name, current address, and phone number to the federal government.
• Federal law requires all people who earn money in the United States to file a tax return, and willful failure to do so to evade taxes due can subject a person to criminal charges, so it is important to consider the risk of not doing so, especially if you have in the past. 
• For more information on ITINs you can visit NILC's resource available in English and Spanish. 

‍Media Talking Points

• This will lead many taxpayers to decide not to file, leading to a significant loss of revenue.
• Many immigrant business owners and entrepreneurs may be forced to close or find other ways to reduce their visibility and risk. This would have considerable impacts on the local job market and economy where they operate.
• This collaboration represents a dangerous precedent of politicizing and weaponizing what should be the everyday actions of the administrative state in support of its essential functions to ensure well being for everybody living in this country.
• It will add to the erosion of trust and participation in official agencies and programs, including possibly in life-saving communications from other agencies, due to the perceived breakdown in reliability of the government overall.
• Congress has made clear that IRS information should be kept confidential. Any collaboration or concession to the executive branch would be a violation of the U.S. tax code and a violation of privacy for all U.S. taxpayers.
• The role of the IRS is to administer federal tax laws and collect U.S. taxes from individuals and corporations. There is no role for IRS employees in immigration enforcement. 
• Diverting IRS resources from their actual responsibilities to immigration enforcement will cause strain on a department already reeling from mass layoffs. Critical services like processing returns will be delayed.
• This irresponsible agreement comes at a time when the administration is steering the country toward a deep economic recession. Reducing tax contributions will leave states and cities unable to respond to the fiscal crisis the Trump administration is manufacturing.
• The administration’s actions regarding the IRS not only risk a significant drop in the number of people filing taxes—due to fear and intimidation—but also prevent millions of households from receiving their refunds. 
• In 2022, the Institute of Taxation and Economic Policy (ITEP) reported immigrants with irregular status paid over $97 billion in federal, state, and local taxes. These dollars are used to fund essential social programs like Social Security and Medicaid, despite most immigrants not having access to these programs.
• This undoubtedly will have a chilling effect on immigrants who wish to follow the law and pay their taxes. People should not fear being targeted for fulfilling their legal duty.
• This action is a politically motivated attack on the privacy of all U.S. taxpayers. Releasing IRS data impacts the privacy of everyone, including U.S. citizens.
• Anti-immigrant propaganda often lies about immigrants not paying federal taxes, but if that were true, they would not be seeking to violate privacy laws to access tax information of immigrant taxpayers. 

‍Actions we can take right now

• Demand your elected officials speak up to stop your data from being shared. Make calls, email, and requests your community do the same.
• Ensure that reliable and effective information is shared with the community. Each individual must make their own decision, but it must be informed with trusted and accurate information. 
• Work to inform the public at large and not only immigrant communities. This impacts everyone and would set a worrisome precedent. 
• Build community pressure to ensure this collaboration does not proceed. 
• Host a community informational session with an enrolled tax professional and lawyer so that communities can receive the information they need.
• Support the lawsuit by elevating the case and the importance of this action. 
• Keep up to date with ongoing developments. Alianza Americas will continue to monitor this situation and provide future guidance.
• A lot of misinformation will be circulating, so let's not contribute to spreading anything that doesn't come from reliable sources.

This page was updated on: April 9, 2025