Recent developments indicate that the IRS is considering sharing taxpayer data with Immigration and Customs Enforcement (ICE), potentially affecting individuals with Social Security Numbers (SSNs) and Individual Taxpayer Identification Numbers (ITINs).
This policy shift could have significant implications for taxpayers:
- Data Privacy Concerns: Historically, the IRS has safeguarded taxpayer information, sharing it with law enforcement only under specific circumstances. The proposed data-sharing agreement may compromise this confidentiality.
- Impact on ITIN Holders: Many immigrants use ITINs to fulfill tax obligations. The potential use of their tax data for immigration enforcement could deter compliance and push individuals into the informal economy.
- Legal Challenges: Organizations have initiated lawsuits to prevent the IRS from sharing data with immigration authorities, emphasizing the importance of maintaining taxpayer privacy.
“Undocumented immigrants paid $96.7 billion in federal, state and local taxes in 2022”
– the Institute on Taxation and Economic Policy
To our clients and other taxpayers across the nation:
- Stay Informed: Stay abreast of policy changes that may affect your rights and obligations.
- Consult Professionals: Seek advice from tax and legal experts to understand how these developments may impact your situation. Â
- Advocate for Privacy: Engage with community organizations that support taxpayer rights and privacy protections.
Maintaining compliance with tax laws is essential. However, it’s equally important to be aware of how policy changes may affect your personal information and to take steps to protect your rights. Click here to read more.
