Explicame: 7 Million Immigrant Taxpayers Could Be Investigated Over Shared IRS Data

The Internal Revenue Service (IRS) has initiated a controversial data-sharing program with immigration authorities, targeting up to 7 million immigrants. This move is part of a broader deportation effort under the Trump administration, following an agreement between the Department of the Treasury and the Department of Homeland Security (DHS). The agreement allows the DHS to access taxpayer information to locate immigrants facing deportation orders or federal criminal investigations.

In April, the IRS and DHS signed an agreement to share taxpayer data, marking a significant shift in policy. The IRS, which traditionally maintains strict confidentiality of taxpayer information, is now providing personal details such as names, addresses, and tax data. This initiative aims to assist the DHS in confirming the locations of individuals with final deportation orders or under federal criminal investigation.

Impact on IRS and Its Employees

The decision to share data has caused internal turmoil within the IRS. Employees were reportedly shocked by the DHS’s request to access data on 7 million immigrants. Concerns over the legality of this collaboration have led to the resignation or imminent departure of several high-ranking IRS officials. The controversy also coincides with the removal of Billy Long as IRS commissioner, further highlighting the agency’s internal challenges.

Despite the DHS’s request for information on 1.23 million individuals, the IRS shared data on less than 5% of those requested. The lack of exact matches between ICE’s data and IRS records limited the amount of information shared. This outcome has reportedly displeased the White House, which expected a more substantial data exchange to support its immigration enforcement efforts.

The data-sharing agreement raises significant legal and ethical questions. While IRS data is generally confidential, exceptions exist for law enforcement investigations. However, it remains unclear if the DHS has provided sufficient evidence to justify accessing IRS data for non-tax-related investigations. Immigration advocates argue that this agreement breaches the IRS’s duty to protect taxpayer information and sets a concerning precedent for future data sharing.

Many immigrants register with the IRS and pay taxes to demonstrate their compliance with U.S. laws, hoping it will aid their immigration cases. The new data-sharing initiative undermines this trust, potentially deterring immigrants from fulfilling their tax obligations. The fear of deportation may discourage immigrants from engaging with the IRS, impacting tax revenue and complicating immigration cases.

https://www.explica.me/en/news/7-Million-Immigrant-Taxpayers-Could-Be-Investigated-Over-Shared-IRS-Data-20250809-0001.html

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