IRS, DHS & ITIN Updates
(Updated April 10, 2025) — On April 7, 2025, Treasury Secretary Scott Bessent made an unprecedented agreement with Homeland Security Secretary Kristi Noem that allows ICE to request personal information from the IRS of individuals who have final orders of removal or are under criminal investigations. From both tax and legal professionals, the Department of Homeland Security’s effort to use the IRS for immigration enforcement has raised concerns about potential violation of privacy protections, increased wrongful arrests and imprisonments, decreased resources in the IRS to uphold tax compliance, and erosion in the decades-long trust built between the IRS and the immigrant population.
How Does This Impact Everyone?
The cooperation between the Department of Homeland Security (DHS) and IRS has greater implications, affecting the integrity of the tax system and the privacy rights of all taxpayers. The IRS has long assured individuals that their tax information is confidential, a promise that encourages compliance and trust in the system. If that trust is broken, people—regardless of immigration status—may become hesitant to file taxes accurately, fearing that their personal data could be used against them.
Moreover, it sets a precedent: if one administration can use tax records for immigration enforcement, future administrations could justify similar breaches for other political or punitive purposes. This erosion of privacy protections threatens not just undocumented individuals but the fundamental rights of all taxpayers.
Tax and legal professionals are also questioning the ethics behind DHS using taxpayer data for immigration enforcement and the department’s integrity in adhering to the privacy laws. “When the government can arbitrarily decide whose privacy is protected and whose isn’t, no one’s rights are truly secure,” said Cristobal Cavazos, Executive Director of Immigrant Solidarity DuPage. Law experts from the Tax Law Center at NYU Law speculate that this agreement will likely lead to misidentifications and wrongful arrests, deportations, and imprisonments, given “DHS’s track record of errors when it comes to ‘identifying’ information”.
What Happens Next?
Several organizations have joined in the lawsuit, condemning DHS’s efforts to obtain sensitive taxpayer information that is protected by privacy laws for all taxpayers, regardless of immigration status. On March 7, 2025, Centro de Trabajadores Unidos and Immigrant Solidarity DuPage filed a lawsuit against the Treasury Department and IRS in federal court. This lawsuit (Centro de Trabajadores Unidos v. Bessent) was amended on March 26, 2025, adding Inclusive Action for the City and Somos Un Pueblo Unido as plaintiffs and Secretary of Homeland Security Kriti Noem, DHS, ICE, and Acting ICE Director Todd Lyons as defendants.
The lawsuit seeks to prevent the unlawful disclosure of taxpayer information, defend the rule of law, and ensure confidentiality of all taxpayer information.
What Can I Do Right Now?
Federal law protects the confidentiality and privacy of taxpayer data, a law enacted by Congress directly after the Nixon administration abused IRS tax records to target political opponents. Contact your representatives in Congress and let them know of your concern for taxpayer privacy. Urge them to uphold privacy laws by publicly denouncing collaboration between the IRS and DHS and requesting the Treasury Secretary to keep taxpayer information protected as required by law. Download this fact sheet to learn about the importance of taxpayer privacy and upholding the integrity of our tax system.
We encourage undocumented individuals to consult with immigration attorneys and tax professionals to understand how disclosing information to the IRS (e.g. filing taxes, applying for an ITIN) may impact them, especially if they:
- have a final order of removal;
- are under criminal investigation, including for failing to leave the country after 90 days;
- are considering applying for an ITIN for the first time;
- have personal information changed since their prior IRS tax return; or
- have had prior interaction with ICE.
Learn more about finding legal help here.
