IRS-ICE Deal Could Leave Undocumented Immigrants in a Tough Spot, Expert Says

A potential agreement between the Internal Revenue Service (IRS) and U.S. Immigration and Customs Enforcement (ICE) is raising eyebrows, as it could place undocumented immigrants in a precarious position, according to federal tax expert Adam Brewer.

"It is going to discourage those taxpayers from even filing, so it really does put them between a rock and a hard place," Brewer, who works for AB Tax Law, shared with Fox News Digital.

The deal, reportedly nearing finalization, would allow ICE to provide the IRS with names and addresses of undocumented immigrants. The IRS would then cross-check that information against tax records and share updated addresses with ICE. It’s a move that critics argue could jeopardize the trust built between undocumented taxpayers and the IRS over years of safeguarding tax records.

Some IRS employees have voiced concerns, pointing out that the agency has historically assured the confidentiality of taxpayer information, even for those in the country illegally, to encourage compliance with federal tax laws.

The proposed agreement would expand the IRS's use of taxpayer data under a privacy exemption typically reserved for criminal investigations. Brewer highlighted the unprecedented nature of this shift, noting, "Stretching the definition of criminal investigations to include illegal immigration is something entirely new for the IRS."

Such a shift could have ripple effects, potentially discouraging undocumented immigrants from filing tax returns—a crucial step for many seeking legal status in the future. Brewer explained, "The IRS knows and ICE knows that these tax returns are required, and now they've really put a big disincentive in front of taxpayers from filing."

From a practical standpoint, the deal could streamline ICE’s operations. Brewer acknowledged that IRS records often provide more up-to-date address information than immigration documents, which could save resources for immigration authorities. "If someone just filed a tax return last month for 2024, that address information would be more recent or more likely to be accurate," he said.

However, Brewer warned that such interagency collaboration could erode public trust in the IRS. "This feels like a deviation from what we've known for years … that if you share information with the IRS, it stops there," he added. Comparing the situation to the DMV turning over addresses to ICE, Brewer emphasized how such actions could discourage compliance across various governmental processes.

The deal aligns with broader efforts under President Trump’s administration to accelerate deportations, fulfilling campaign promises to crack down on illegal immigration. Still, Brewer cautioned that this approach might damage the IRS’s credibility as a neutral arbiter, a reputation it has worked hard to maintain over the years.

While the efficiency argument holds water, it seems the potential fallout from breaking long-standing promises of confidentiality could have far-reaching implications. For many undocumented immigrants, the question will now be: Is filing taxes worth the risk?