The IRS and the Department of Homeland Security (DHS) have reached a data-sharing agreement to support the Trump administration’s immigration enforcement agenda, according to a court document filed on Monday night (7).
According to the terms of the agreement, U.S. Immigration and Customs Enforcement will send names and addresses of immigrants living in the United States without legal status who have final removal orders.
“As established in the Memorandum of Understanding, DHS may legally request information related to individuals under criminal investigation, and the IRS must provide it,” the court document states. The memorandum of understanding was filed in court and states that the agencies are exercising this authority under presidential decree.
“The basis of this Memorandum of Understanding relies on longstanding authorizations granted by Congress, which serve to protect Americans’ privacy while simplifying the pursuit of criminals,” said the Treasury Department spokesperson. “After four years of Joe Biden flooding the country with illegal immigrants, President Trump’s top priority is to ensure the safety of the American people,” he added.
The IRS privacy protection laws, specifically Section 6103 of the Internal Revenue Code, state that the Department of the Treasury is committed to protecting taxpayer data.
However, Section 6103 provides a criminal exemption. This exemption requires the IRS to assist law enforcement authorities in pursuing criminals and will be applied against any immigrant who has remained in the country for more than 90 days, as part of the exemption.
Current and former IRS employees have expressed concern that the new policy could affect tax collection and discourage tax payments by working immigrants without legal status.
The IRS allows immigrants without legal status to file income taxes using Individual Taxpayer Identification Numbers (ITIN). These immigrants contributed $25.7 billion in taxes to Social Security in 2022, according to a recent analysis by the Institute on Taxation and Economic Policy.
Since unauthorized workers cannot receive retirement benefits and other Social Security benefits without a change in their immigration status, the billions they invest in the program end up becoming a kind of subsidy for American beneficiaries.
Sources: ABC News and The New York Times