- IRS negotiating to share tax data with ICE for deportation targeting
- Potential violation of Section 6103 tax privacy protections
- Undocumented immigrants contributed over $25B via ITIN tax filings
- California lawmakers propose shield law amid enforcement fears
The Internal Revenue Service is finalizing a controversial agreement to provide Immigration and Customs Enforcement access to confidential taxpayer records, according to internal sources. This unprecedented data-sharing initiative would enable ICE to cross-reference suspected undocumented immigrants against IRS databases containing addresses, employment history, and financial records. Legal analysts contend the move directly conflicts with federal tax code protections designed to prevent precisely this type of law enforcement overreach.
Section 6103 of the U.S. tax code explicitly prohibits IRS disclosure of taxpayer information except under narrow judicial circumstances. While the provision allows limited cooperation for investigating non-tax crimes, legal scholars argue systematic immigration enforcement exceeds this scope. This sets dangerous precedent for weaponizing financial data,stated Georgetown University tax law professor Amanda Wu. If courts allow this, what stops future administrations from accessing medical records or school registrations?
Over 4.3 million taxpayers used Individual Taxpayer Identification Numbers (ITINs) last fiscal year, including undocumented workers contributing to Social Security through payroll deductions. Despite generating billions in annual revenue, ITIN filers remain ineligible for most public benefits. Tax policy experts warn the proposed data-sharing could devastate voluntary compliance rates. Why file taxes if it becomes a deportation roadmap?asked National Tax Advocates director Carlos Mendoza. We’re risking collapse of a system that’s functioned for decades.
California legislators introduced SB-1042 last week seeking to prohibit state agencies from assisting federal immigration enforcement using tax data. The proposed law mirrors protections enacted in 13 states shielding healthcare and education records. We won’t let the IRS turn TurboTax into TrackDown,declared Assemblywoman Luz Rivas at a Los Angeles press conference. Immigration advocates cite 2023 ICE raids in Phoenix that used utility bills to detain 140 individuals as cautionary precedent.
Fourth Amendment challenges are expected if the agreement proceeds, with civil liberties groups preparing injunctions. Meanwhile, IRS whistleblowers report declining ITIN renewal requests since news of the negotiations leaked. People are terrified,shared Chicago community organizer Maria Gutierrez. Families who’ve paid taxes for 20 years now feel hunted.As debates intensify, the White House maintains the policy solely targets criminals, though internal memos obtained by ABC News show 89% of flagged cases involve non-violent offenders.