What's happening?

Since late February, the Department of Homeland Security (DHS) has pressured the Internal Revenue Service (IRS) to hand over the addresses of roughly 700,000 individuals it is seeking to deport. These records would include private information like home addresses, phone numbers, and email addresses. IRS officials have initially denied DHS access to verify these records for privacy and legal concerns. Part of the Trump administration's plan is to direct thousands of IRS employees to assist with immigration enforcement. Reports show the IRS is currently negotiating terms that would allow them to respond to this request without violating tax privacy laws. 

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 attempt to use IRS resources to support 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

• 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.
• Individuals with an irregular status but who hold a valid social security number may be at a lower risk, but should also consult with a tax professional for tax-related questions.
• 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

• 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. 
• 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.
• 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

• 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 a 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.
• ‍