INSIDE COMPLIANCE

The Internal Revenue Service (IRS) is reportedly nearing an agreement to share limited taxpayer data with Immigration and Customs Enforcement (ICE), marking a significant departure in tax enforcement and immigration policy. This potential deal would allow ICE and the Department of Homeland Security (DHS) to verify whether names and addresses match filed tax records, purportedly to facilitate immigration enforcement efforts. However, this agreement raises concerns about taxpayer privacy, legal and corporate compliance, and potential declines in tax participation, which could undermine both federal revenue tax collection and trust in the tax system.