Advocates blast IRS deal to share data on undocumented immigrants
Apr 14, 2025
EL PASO, Texas (Border Report) – It’s called an ITIN, and for the past three decades it has allowed undocumented immigrants to file an income tax return even if they lack work permits or a Social Security number.
The Internal Revenue Service’s rationale is that all wage earners regardle
ss of immigration status must pay taxes. The Individual Taxpayer Identification Number provided such a vehicle – on the promise the immigrant’s information wouldn’t be shared with immigration enforcement agencies.
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But a deal reportedly reached this week by the IRS and the Department of Homeland Security has broken that covenant and sent shockwaves through the immigrant community at the peak of tax-filing season, advocates and some lawmakers say.
“We’re basically telling people, don’t pay your taxes because otherwise you’ll be put on a target list. At least that’s people are interpreting from this. […] What an incredible loss of revenue for the federal government,” said U.S. Rep. Veronica Escobar, D-Texas.
The deal between the two agencies is limited to immigrants subject to criminal investigations, per NBC. But some immigration violations, such as illegal re-entry after deportation, are considered felonies.
Still, the policy change makes some uncomfortable.
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“When you provide information to the IRS it is confidential and the IRS is entrusted to use that information for tax purposes, not others,” said Ray Mancera, national vice president for the Southwest of the League of United Latin American Citizens (LULAC). “It is not up to them to share that with any other department. They have the responsibility to ensure the privacy of our information.”
Staggering numbers
An ITIN is a tax processing number issued by the IRS after 1996 for certain residents and nonresident aliens. It is not an “alternate” Social Security number nor a work permit; it doesn’t allow the filer to claim the Earned Income Credit, but filers may claim refunds.
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Historically, the IRS has issued 26 million ITINs since 1996, not only to undocumented workers but also for the spouses of legal residents filing a joint return and their dependents.
According to the Treasury Inspector General for Tax Administration, 5.8 million of those were active as of Dec. 31, 2022. Almost 487,000 new ITINs were issued that calendar year, the agency reported.
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The Institute on Taxation and Economic Policy estimated that undocumented immigrants paid $96.7 billion in federal, state and local taxes in 2022, per NBC.
“Think undocumented immigrants don’t pay taxes? Think again,” Estrella del Paso migrant and refugee service posted on social media last week. “Millions of undocumented immigrants contribute to the U.S. economy by filing taxes every year ‘legally’ through ITINs. It’s time to correct the narrative and recognize the real impact of immigrant communities.”
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The sources did not estimate the possible impact of the fear factor the DHS-IRS deal has had so far. ...read more read less