IRS-ICE Agreement Sparks Tax Fears Among Immigrants Facing Deportation Risks

Ivan, a 54-year-old Massachusetts resident from Colombia, is among millions of American taxpayers facing a grim reality. Following a recent agreement allowing the IRS to share certain tax information with Immigration and Customs Enforcement (ICE), he fears deportation for fulfilling his civic duty. This agreement marks a drastic shift from a longstanding federal promise that tax information would remain confidential for undocumented immigrants, undermining their sense of safety when filing taxes.

In 2022, undocumented immigrants contributed a staggering $96.7 billion in federal, state, and local taxes, crucial to the economy. Experts warn that if fear drives tax filers away, it could result in a $9.5 billion annual loss in tax revenue from just a 10% decline in compliance. This financial hit threatens the funding for essential services like Social Security and Medicare.

Legal experts express deep concern over the chilling effect this could have, predicting a decline in trust towards government institutions. Advocates assert that this policy not only jeopardizes undocumented immigrants but poses a broader threat to all residents who wish to contribute responsibly. As a Brazilian asylum-seeker put it, despite years of tax compliance, now they face an imminent threat simply for being law-abiding citizens.

This drastic policy shift raises profound questions about the well-being of countless immigrants dedicated to upholding their responsibilities while living under constant fear.