The IRS is moving forward with a proposed agreement allowing limited data sharing with U.S. immigration authorities, including Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS). This collaboration aims to support immigration enforcement efforts while operating within the legal framework of existing taxpayer privacy laws.
Purpose of the Agreement
The primary objective of this proposed agreement is to enhance the ability of immigration agencies to verify information related to ongoing immigration investigations. The IRS will respond to requests from immigration authorities by confirming whether the names and addresses provided match its internal tax records. No additional personal or financial information will be shared as part of this process.
Data-Sharing Framework
Under the proposed framework, immigration officials will be permitted to submit specific details—such as names and addresses—of individuals who are subjects of immigration-related investigations to the IRS. The IRS’s response will be limited to confirming whether the submitted details match their records. This arrangement is intended to support certain criminal investigations without compromising broader taxpayer privacy protections.
Existing Legal Authority
This proposed agreement falls under existing legal exceptions in taxpayer privacy laws, which allow limited data sharing in specific criminal investigations. The IRS has previously participated in similar disclosures to support federal criminal cases, but this agreement would formalize and expand that cooperation with immigration authorities.
Concerns and Criticism
Critics argue that this increased collaboration could damage public trust in the IRS, especially among immigrant communities. Concerns have been raised that individuals may avoid filing taxes for fear that their information could be used for immigration enforcement purposes. This hesitation may affect not only undocumented individuals but also U.S. citizens with mixed-status families.
John Koskinen, a former IRS Commissioner, has voiced opposition to this initiative, emphasizing that the IRS’s mission is revenue collection, not immigration enforcement. Blending these objectives, he argues, could undermine the agency’s credibility and discourage voluntary tax compliance.
Context and Broader Implications
The IRS has historically promoted compliance by issuing Individual Taxpayer Identification Numbers (ITINs) to individuals without Social Security numbers, allowing them to file tax returns. As of 2022, approximately 5.8 million active ITINs were in use. This system has not only generated revenue but also created records of compliance for individuals navigating the U.S. tax system.
The proposed partnership is part of a broader effort to improve data integration across federal agencies. It comes at a time when the IRS is undergoing restructuring and experiencing staffing changes, which may impact its enforcement capabilities.
Conclusion
While the proposed data-sharing agreement is legally grounded and designed to be limited in scope, it has raised significant concerns about public trust and voluntary tax compliance. As the IRS moves forward with this initiative, it is crucial for taxpayers and advisors to stay informed and understand the potential implications of interagency cooperation on immigration matters. Contact Information
If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information.