Undocumented Immigrants Alarmed as IRS Grants ICE Access to Tax Records

A recent agreement between the Internal Revenue Service (IRS) and US Immigration and Customs Enforcement (ICE) has triggered widespread apprehension among undocumented workers in the United States. 

The arrangement permits ICE to access tax records linked to Individual Taxpayer Identification Numbers (ITINs), which are utilized by immigrants without Social Security numbers to file taxes and engage in financial activities. While authorities assert that this measure is exclusively intended for serious criminal cases, many fear it could broaden immigration enforcement, potentially endangering vulnerable communities.

The ITIN system, established in 1996, has issued more than 26 million numbers, with 5.8 million currently active. This system enables immigrants to pay taxes, access financial services, and build credit histories, contributing significantly to state and federal revenues. In Florida alone, undocumented immigrants paid $1.8 billion in taxes in 2022.

Critics worry that the IRS-ICE partnership could weaponize what was once a financial lifeline. Virginia Tenchipe, a Mexican immigrant living in Dover since 2006, uses her ITIN to work in construction and cleaning services, consistently paying her taxes. "Every year, no matter what, I pay my taxes," she said. "But now, I wonder what that means for me."

Tax specialist Raquel Pedraza notes that some clients are considering selling their corporations or transferring ownership to family members with legal status, while others are questioning whether continuing to file taxes is worth the risk. "The fear is real," she said. "Many are questioning whether staying in good standing with the IRS will cost them their security."

According to Acting ICE Director Todd Lyons, the federal government insists that the agreement is designed to track down criminals and that data-sharing will be limited to major criminal cases. However, immigrant communities remain skeptical, citing past instances of enforcement measures disproportionately affecting those seeking work. Advocates argue that the collaboration could easily expand beyond its stated purpose, leading to deportations and family separations.

Daniel Castellanos, workforce engagement director at Resilience Force, has called the move a “total injustice,” citing the indispensable contributions of undocumented workers to industries that rely on their labour. Ira Mehlman, a spokesperson for the Federation for American Immigration Reform (FAIR), argues that ITINs have been misused, with some employers intentionally classifying undocumented workers as subcontractors to bypass federal hiring restrictions. 

“The vast majority of people filing tax returns with ITINs are illegal aliens,” he said. “Cooperation between DHS and the IRS is necessary to track and remove them.”