On February 7, the new Secretary of Homeland Security Kristi Noem sent a memo to the Internal Revenue Service asking for assistance with immigration enforcement. It requested the availability of qualified officials — including law enforcement — to work with Immigration and Customs Enforcement (ICE).
This is part of President Donald Trump’s campaign promise to deport a large number of undocumented migrants, particularly those who have committed crimes or have a criminal background. ICE’s X/Twitter account has posted daily enforcement updates since Trump (re)took office. As a result, its follower count and engagement have exploded.
The memo specifically mentioned investigating the financial activities of human-trafficking rings, businesses that employ undocumented migrants, and seizing assets tied to immigration-related offenses.
Historically, the IRS has not shared information with ICE, the United States Citizenship and Immigration Services, or the Department of Homeland Security. This is because federal law states that tax returns and return information is confidential except in limited circumstances. Also, the impression of nondisclosure would incentivize undocumented migrants to file tax returns and pay taxes. Indeed, undocumented migrants are estimated to pay $96.7 billion in federal, state, and local taxes. Lastly, sharing tax information would be futile since there is no established method of identifying undocumented migrants solely from tax information.
Over 2,100 IRS special agents currently specialize in investigating tax evasion and other financial crimes. They carry firearms and have law enforcement authority. Given their relatively small number, it is unlikely they will be watching the border with Border Patrol agents.
Despite the separation, the IRS and its criminal investigation division collaborates with other federal agencies to combat financial crime.
Undocumented migrants, despite living in the shadows, are required by law to file tax returns and pay taxes even if they do not have a work permit or legal residency status. For tax purposes, residency is determined by either the possession of a green card or the number of days present in the U.S. based on the complex “substantial presence test.” If an undocumented migrant meets the residency requirement, they are taxed like a U.S. citizen. If they are considered nonresidents, they are only taxed on their U.S.-source income.
Tax returns require a social security number. Undocumented migrants usually cannot get one just by asking for it. Until they qualify to get a social security number, they can apply to get an Individual Tax Identification Number (ITIN) which can be used to file a tax return or complete employment documents.
Tax compliance can be crucial if the undocumented migrant has been placed in removal proceedings, which is the current term for deportation. If their only hope for relief is cancellation of removal for certain nonpermanent residents, their tax returns can be used to prove 10 years of continuous residence in the U.S. before receiving the notice to appear in immigration court and to show that they are a person of good moral character. A conviction of tax evasion or filing false tax returns is considered a crime of moral turpitude and can automatically bar cancellation of removal relief.
It should be noted that even if the applicant is tax compliant, they will have to show that their removal would create an exceptional and extremely unusual hardship to the applicant’s U.S. citizen or permanent resident spouse, parent, or children. Unfortunately, this has been known to be very difficult due to the stringent standards set by three Board of Immigration Appeals decisions.
It is unclear how the IRS will respond to Noem’s request for assistance. Even though tax return information is generally confidential, chances are that the IRS and its criminal investigation division will collaborate to shut down criminal human-trafficking rings and curb illegal immigration. Undocumented migrants should consult with an immigration attorney to find ways to obtain legal status or fight a removal proceeding. In either case, being tax compliant can help.
Steven Chung is a tax attorney in Los Angeles, California. He helps people with basic tax planning and resolve tax disputes. He is also sympathetic to people with large student loans. He can be reached via email at stevenchungatl@gmail.com. Or you can connect with him on Twitter (@stevenchung) and connect with him on LinkedIn.
The post DHS Seeks IRS Help In Fulfilling Trump’s Promise To Mass Deport Undocumented Migrants appeared first on Above the Law.
On February 7, the new Secretary of Homeland Security Kristi Noem sent a memo to the Internal Revenue Service asking for assistance with immigration enforcement. It requested the availability of qualified officials — including law enforcement — to work with Immigration and Customs Enforcement (ICE).
This is part of President Donald Trump’s campaign promise to deport a large number of undocumented migrants, particularly those who have committed crimes or have a criminal background. ICE’s X/Twitter account has posted daily enforcement updates since Trump (re)took office. As a result, its follower count and engagement have exploded.
The memo specifically mentioned investigating the financial activities of human-trafficking rings, businesses that employ undocumented migrants, and seizing assets tied to immigration-related offenses.
Historically, the IRS has not shared information with ICE, the United States Citizenship and Immigration Services, or the Department of Homeland Security. This is because federal law states that tax returns and return information is confidential except in limited circumstances. Also, the impression of nondisclosure would incentivize undocumented migrants to file tax returns and pay taxes. Indeed, undocumented migrants are estimated to pay $96.7 billion in federal, state, and local taxes. Lastly, sharing tax information would be futile since there is no established method of identifying undocumented migrants solely from tax information.
Over 2,100 IRS special agents currently specialize in investigating tax evasion and other financial crimes. They carry firearms and have law enforcement authority. Given their relatively small number, it is unlikely they will be watching the border with Border Patrol agents.
Despite the separation, the IRS and its criminal investigation division collaborates with other federal agencies to combat financial crime.
Undocumented migrants, despite living in the shadows, are required by law to file tax returns and pay taxes even if they do not have a work permit or legal residency status. For tax purposes, residency is determined by either the possession of a green card or the number of days present in the U.S. based on the complex “substantial presence test.” If an undocumented migrant meets the residency requirement, they are taxed like a U.S. citizen. If they are considered nonresidents, they are only taxed on their U.S.-source income.
Tax returns require a social security number. Undocumented migrants usually cannot get one just by asking for it. Until they qualify to get a social security number, they can apply to get an Individual Tax Identification Number (ITIN) which can be used to file a tax return or complete employment documents.
Tax compliance can be crucial if the undocumented migrant has been placed in removal proceedings, which is the current term for deportation. If their only hope for relief is cancellation of removal for certain nonpermanent residents, their tax returns can be used to prove 10 years of continuous residence in the U.S. before receiving the notice to appear in immigration court and to show that they are a person of good moral character. A conviction of tax evasion or filing false tax returns is considered a crime of moral turpitude and can automatically bar cancellation of removal relief.
It should be noted that even if the applicant is tax compliant, they will have to show that their removal would create an exceptional and extremely unusual hardship to the applicant’s U.S. citizen or permanent resident spouse, parent, or children. Unfortunately, this has been known to be very difficult due to the stringent standards set by three Board of Immigration Appeals decisions.
It is unclear how the IRS will respond to Noem’s request for assistance. Even though tax return information is generally confidential, chances are that the IRS and its criminal investigation division will collaborate to shut down criminal human-trafficking rings and curb illegal immigration. Undocumented migrants should consult with an immigration attorney to find ways to obtain legal status or fight a removal proceeding. In either case, being tax compliant can help.
Steven Chung is a tax attorney in Los Angeles, California. He helps people with basic tax planning and resolve tax disputes. He is also sympathetic to people with large student loans. He can be reached via email at [email protected]. Or you can connect with him on Twitter (@stevenchung) and connect with him on LinkedIn.
