On April 8, the Trump administration authorized Immigration and Customs Enforcement (ICE) to access confidential tax data of undocumented immigrants for deportation purposes. The move marks a dramatic shift from the IRS’s long-standing policy of protecting taxpayer privacy.
With the dust still settling on the announcement made just a week before tax day, some of the estimated 11 million undocumented immigrants in the U.S. may be afraid to file their taxes this year.
What the IRS signed is a memorandum of understanding where the agency agrees to share tax data of certain undocumented immigrants with ICE. ICE may request personal and location information on people with final deportation orders or those under criminal investigation, in particular people who failed to leave the U.S. within 90 days of receiving a deportation order.
While the deal outlines procedures for managing this data, many key details remain redacted, fueling anxiety among immigration advocates.
“This is definitely unprecedented,” said Kevin Lam, clinic director for the Low Income Taxpayer Clinic at The Legal Aid Society. “In some ways, it’s a betrayal of the years the IRS spent trying to make people feel safe about filing taxes.”
However, Lam points out that the data exchange between IRS and ICE hasn’t started yet. “As far as we know, the implementation agreement still hasn’t been signed.”
This information is not a substitute for legal advice from a qualified attorney or accredited representative. The content was last updated April 11, 2025.
What you can do in the meantime
Lam recommends undocumented immigrants file taxes to avoid penalties while weighing the potential benefits and risks. Here are his key recommendations:
- If you’re applying for an ITIN (Individual Taxpayer Identification Number) for the first time, consider delaying your application or filing an extension if possible, since it involves sharing new personal information.
- If you already have an ITIN, you should go ahead and file. This is because the IRS already has your place of address and proof of ID on record as it is tied to your ITIN application.
- Always consult a qualified tax advisor or immigration attorney before making decisions as every case is different.
This agreement between the two agencies is “uncharted territory,” said Hasan Shafiqullah, immigration supervising attorney of the The Legal Aid Society Law Reform Unit. “The IRS has never engaged in this sort of dangerous information-sharing with DHS [Department of Homeland Security]. We’re still considering how to advise our clients,” he cautioned.
Free help is available
In New York City, free services are available to help you file your taxes, no matter your immigration status. Filing taxes regularly can help strengthen your case if you decide to adjust your immigration status or apply for permanent residency in the future.
If you need legal assistance, visit this guide or the American Immigration Lawyers Association (AILA) to find licensed attorneys with immigration expertise. Always review contracts carefully and ask questions before signing. Never sign anything you don’t fully understand.
Remaining informed and cautious can help you navigate this uncertain tax season.
