The Healthy Families Tax Credits Coalition is deeply alarmed by the ongoing and escalating efforts of the Department of Homeland Security (DHS) to access confidential taxpayer information for the purpose of deporting immigrant families.
A memorandum of understanding filed on April 7th disclosed a data-sharing agreement between DHS Immigration and Customs Enforcement (ICE) and the Internal Revenue Service (IRS). This unprecedented breach of taxpayer trust threatens the privacy of all taxpayers and hurts the integrity of our tax system. Confidentiality is a bedrock principle in tax law to make sure people willingly file taxes knowing that the sensitive personal information included is used only for tax purposes. If the IRS cannot be trusted with taxpayer information, people will be less likely to voluntarily comply and tax revenue will predictably drop. DHS has existing resources to enforce immigration laws, and the IRS should not be one of them.
The IRS issues ITINs to certain immigrants who are not eligible for Social Security Numbers (SSN). but must comply with tax laws. For years, it has encouraged immigrants without SSNs to file with an ITIN and has always asserted, on a bipartisan and legal basis, that their information is not shared with ICE. Given the data sharing agreement and other attempts to access protected information, immigrant taxpayers across Massachusetts are hesitant to file this tax season out of fear of deportation.
Immigrant taxpayers are a large and vital part of Massachusetts’ workforce, performing crucial roles for many industries essential to our economy. ICE access to taxpayer data will harm the health, safety, and well-being of these families and entire communities across our state. The Yale Budget Lab estimates that the IRS-ICE agreement could lead to a $25 billion loss in federal income and payroll tax revenue in 2026 and a $147-479 billion loss over 2026-2035 if immigrant filers refrain from reporting their income out of fear. This loss of revenue will affect Social Security, Medicare, and other public assistance programs, many of which are already limited to US citizens. Not filing also means that many immigrant families, who are often among the most vulnerable populations, will lose access to Massachusetts’ new health-boosting and evidence-driven Child and Family Tax Credit.
The Healthy Families Tax Credits Coalition is gravely concerned by this fundamental departure from decades of bipartisan practice at the IRS to keep the personal information of all taxpayers – both immigrants and US citizens – confidential. We remain steadfast in our commitment to advocating for all taxpayers regardless of citizenship status, and urge our Congressional delegation to condemn this attempt to weaponize IRS data for immigration enforcement and call for immediate oversight action.