The IRS is reportedly working on a deal to use tax data to support the Trump administration's mass deportation plan.
“I think a common misunderstanding or misconception is that immigrants in the U.S. are not paying their taxes,” explained Tennessee Justice for Our Neighbors Legal Director Emily Stotts.
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In 2022, undocumented immigrants paid $96.7 billion in federal, state, and local taxes. In Tennessee, they contributed $314.2 million in taxes in 2022, according to the non-partisan Institute on Taxation and Economic Policy. This helps fund public infrastructure, institutions, and services in every state.
“They're paying their taxes because they are members of our community, and that's what members of the community do,” said Tennessee Immigrant and Refugee Rights Coalition Legal Director Allen King.
Data from the American Immigration Council shows that those living in the Volunteer State illegally in 2023 contributed $915.6 million in taxes.
They do this by using an IRS-issued individual taxpayer identification number, or ITIN, which is given to those without a Social Security number.
“I've always explained that the IRS is not allowed to give their information to immigration authorities,” added Stotts.
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However, this could soon change. According to the Washington Post, a proposed agreement may allow ICE to submit names and addresses for cross-verification by the IRS of people who might be in the U.S. illegally.
“People who otherwise would be very happy to pay their taxes might be too afraid to do so,” said King.
Immigration lawyers say that while undocumented immigrants pay taxes, they can’t access many deductions and most social services funded by this money, including Social Security, food stamps, Medicare, and Medicaid.
“They are helping the community without receiving those benefits,” explained King.
They say the potential deal is already creating fear in the immigrant community, deterring individuals from filing with the IRS.
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“If you're afraid to file your taxes because it opens you up to the risk of being separated from your family, you’re probably not going to file or pay your taxes,” said Stotts. “Even if you want to stay, even if that's ordinarily what you have been doing or want to do.”
Personal tax information is considered confidential and protected by the IRS unless disclosure is required in certain circumstances. Internal Revenue Code (IRC) Section 6103 governs the release of taxpayer information, including names and addresses. This section permits the IRS to share information with other government agencies for the purpose of enforcing tax laws and when ordered by a court.
This story was originally published by Patsy Montesinos with the Scripps News Group.
