Overview

• The IRS has implemented a data-sharing agreement with ICE, allowing immigration authorities access to taxpayer information, a significant shift from longstanding privacy protections.
• Undocumented immigrants, who have historically filed taxes in good faith, now face fears of deportation, leading many to question whether they should continue filing.
• Advocates warn that the policy could lead to a sharp decline in tax compliance, with experts estimating a potential $9.5 billion annual loss in tax revenue if filings decrease by 10%.
• Legal challenges are underway, with immigrant rights groups arguing that the agreement violates federal privacy laws by enabling bulk data collection without court orders.
• Critics highlight the erosion of trust in government institutions, while officials defend the policy as a tool to target violent criminals, despite its broader potential applications.