IRS-ICE Team-Up: $6 Billion Hunt Shocks Immigrants

Magnifying glass over IRS website.

The Trump administration has weaponized the IRS against immigrants, using tax data to hunt down and collect $6 billion in fines from those who refused to self-deport.

Story Highlights

  • DHS and IRS forge unprecedented data-sharing agreement to target immigrants with alleged tax debts
  • Federal courts allow enforcement to proceed despite multiple lawsuits challenging privacy violations
  • Trump administration revives WWII-era registration laws requiring non-citizens to carry documentation
  • Immigration advocates warn of dangerous precedent that undermines taxpayer confidentiality protections

Trump’s Bold Immigration Enforcement Strategy

President Trump’s administration has launched an aggressive campaign to collect billions in alleged debts from immigrants who failed to comply with deportation orders. The Department of Homeland Security, working alongside the Internal Revenue Service, is pursuing thousands of immigrants through lawsuits and massive tax bills. This unprecedented collaboration between DHS and IRS represents a fundamental shift in immigration enforcement tactics, leveraging financial pressure to achieve compliance where traditional deportation efforts have fallen short.

Historic IRS-ICE Data Sharing Agreement Takes Effect

Federal courts have allowed the first formal IRS-ICE data sharing agreement to proceed, despite fierce legal challenges from advocacy groups. The agreement grants Immigration and Customs Enforcement access to previously protected taxpayer information, breaking down privacy barriers that have existed since the Nixon administration. This collaboration enables ICE to locate hundreds of thousands of immigrants using tax records, dramatically expanding the government’s enforcement capabilities beyond traditional immigration databases.

WWII-Era Registration Laws Revived for Modern Enforcement

DHS Secretary Kristi Noem has activated World War II-era laws requiring all non-citizens to register with the government and carry proof of registration. The registration rule is explicitly designed to incentivize “self-deportation” by creating administrative burdens and legal vulnerabilities for immigrants. Those who fail to comply face additional penalties and criminal prosecution, adding another layer to the administration’s comprehensive enforcement strategy targeting up to one million deportations annually.

The American Immigration Council and multiple advocacy organizations have filed emergency lawsuits challenging these measures as unconstitutional violations of privacy rights and due process. However, federal judges have consistently declined to block the data sharing, allowing enforcement actions to proceed while litigation continues through the courts.

Constitutional Concerns and Long-Term Implications

Legal experts warn this collaboration sets a dangerous precedent for government overreach that extends far beyond immigration policy. The Electronic Frontier Foundation characterizes the agreement as a betrayal of taxpayer trust that threatens democratic norms and constitutional protections. Taxpayer confidentiality under Section 6103 of the Internal Revenue Code, enacted after Nixon-era abuses, is being systematically dismantled for law enforcement purposes.

Immigration advocates emphasize the chilling effect on tax compliance, warning that immigrants may avoid filing taxes entirely to prevent government detection. This could undermine public revenue while creating a precedent for using federal agencies’ data against American citizens in future enforcement campaigns targeting other populations or policy objectives.

Sources:

Council Suing Trump Administration Over Immigrant Registration Requirement

ICE IRS Data Sharing Agreement Court

IRS DHS ITIN Updates

Judge Declines to Block IRS from Sharing Immigrant Data

IRS ICE Immigrant Data Sharing Agreement Betrays Data Privacy and Taxpayers Trust