The IRS Will Share Data with Immigration Authorities — What Does This Mean for Immigrants?

Irina Rodboon
Apr 11
2 min read

On April 8, 2025, it was revealed that the Internal Revenue Service (IRS) had entered into an agreement with U.S. Immigration and Customs Enforcement (ICE) to share tax information about certain immigrants without legal status.

This marks a significant shift in the decades-long practice of protecting taxpayer confidentiality — even for those who pay taxes while lacking immigration status.

What Happened?

The agreement between the IRS and ICE was signed on April 8 and became public the same day, following a lawsuit filed by immigrant advocacy groups. According to the new memorandum of understanding, immigration officers will be able to request tax information from the IRS about individuals who:

have received final orders of removal;
are under criminal investigation — including for failing to leave the country within the required 90-day period.

Although much of the document remains redacted, it’s known that the agreement includes strict guidelines on how ICE must handle and use the information it receives, with an emphasis on maintaining confidentiality.

Why Is This Causing Concern?

For years, the IRS had reassured taxpayers who use an Individual Taxpayer Identification Number (ITIN) — a number issued to those who aren't eligible for a Social Security Number — that their information would not be used for immigration enforcement. This promise helped encourage tax compliance among undocumented immigrants, who, according to experts, contribute billions of dollars to the federal budget each year.

Now, with this policy shift, immigrant advocates fear that many people may stop filing their taxes out of fear of arrest or deportation. This could push thousands of workers further into the shadows and result in the loss of critical tax revenue that supports public services like schools, healthcare, and disaster relief.

What Are Lawmakers in Congress Saying?

Dozens of Democratic members of Congress signed a letter urging the IRS and the Department of Homeland Security not to move forward with the agreement, warning of its potentially harmful consequences. The letter stated that this new policy “could reduce federal revenues and increase the tax burden on law-abiding American citizens.”

Despite the objections, the Treasury Department and DHS signed the agreement, citing legal exceptions that allow the use of tax data in criminal investigations.

What Does This Mean For Immigrants?

If you are living in the U.S. without legal status and file taxes using an ITIN, it’s important to understand the risks that may come with this new policy. The agreement primarily targets individuals who already have final deportation orders or are under criminal investigation. However, concerns remain — the line between “investigation” and data collection could become blurred.

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