IRS & ICE Agreement: Why Some Immigrants Are Afraid to File Taxes

Could Filing Your Taxes Get You Deported? Here's What You Need to Know

What if filing your taxes could put you at risk of being deported?
Would you take that chance?

Or would you rather stay in the shadows, even if it means missing out on tax refunds, legal protections, and maybe even a shot at a better future?

This year, the IRS reported a sharp drop in tax filings, down nearly 10%.
That's huge. Tax filings are usually pretty consistent.

So what’s the reason? Honestly, we don't know for sure.

But for many immigrants, it’s becoming about confusion, procrastination, and fear.

Fear that filing taxes could alert immigration authorities, specifically ICE, and trigger serious consequences like detention and deportation.

And recently, that fear got a lot more real.

A new agreement between the IRS and Homeland Security now allows ICE (Immigration and Customs Enforcement) to request taxpayer information for certain immigration cases.

Hi, I'm Noel Lorenzana. I'm a CPA, but I’m not an attorney; this is not legal advice.

I always recommend speaking with a qualified immigration attorney if you're facing legal questions about your status or your rights.

That said, in this blog post, we'll break down
- What this new IRS-ICE agreement really means
- Why so many immigrants are afraid to file
- What the law actually says about your rights, your risks, and your options

If you or someone you care about is unsure whether filing taxes is safe, stick with me.
We’ll sort through the facts, cut through the fear, and talk about what you can do to protect yourself.

Tax Filings Are Down, and Fear Is a Big Reason

The IRS recently reported that tax filings are down about 10% this year compared to previous years.

That’s a big drop.

Sure, there could be several reasons for it: changes in tax laws, some hoping the IRS might eventually be eliminated, or even life simply getting in the way.

But a growing concern is fear within immigrant communities.

Especially for those without legal status, many are holding back from filing altogether.

And it’s not because they don't want to do the right thing. It’s because they’re worried that filing taxes could update their personal information, like their current address, with the government, and that somehow, that information could be shared with immigration authorities, leading to deportation.

They're afraid that something as routine as filing a tax return could bring unwanted attention from ICE.

And, unfortunately, a recent policy change has added fuel to that fear.

So Why the Sudden Panic?

It really comes down to one thing:
People are afraid their information could be shared with immigration enforcement.

Normally, that fear wouldn’t make much sense. The IRS is bound by very strict privacy laws.

Under Section 6103 of the Internal Revenue Code, the IRS isn’t allowed to share your tax information with other federal agencies, not even with ICE, unless there's a specific legal exception (and those are rare).

Most taxpayers, especially those filing with an ITIN (Individual Taxpayer Identification Number), shouldn't have anything to worry about.

But here’s where things have started to shift.

In 2025, the IRS signed a formal agreement with Homeland Security. This agreement gives ICE access to certain taxpayer information in specific situations, particularly when someone has a final order of removal and hasn't left the country within 90 days.

To be clear, this isn’t supposed to apply to ordinary tax filings. It’s targeted at serious cases.

But when you combine that with the growing fear and mistrust in immigrant communities, it’s easy to see why people are worried.

Even though the law still technically protects most taxpayers, the damage to public trust is already done.

Why the Fear Is Growing

Several things are driving the fear right now:

- Immigration enforcement is getting more aggressive with the new Trump administration.
- Cooperation between agencies (IRS and ICE) has people nervous, even if it's supposed to be limited.
- April 2025 news confirmed a formal data-sharing agreement between the IRS and Homeland Security.
- IRS Acting Commissioner Melanie Krause resigned over the deal, saying it undermines taxpayer trust and blurs the line between tax enforcement and immigration enforcement.

Her resignation sent a loud message, not just to the government but to the public.

On top of that, there's lingering fear from older policies like the public charge rule, which made immigrants afraid that using public benefits could hurt their chances of getting a green card.
Even though that rule was rolled back, the fear didn’t disappear.

For many, it's no longer just about one policy.
It’s about a growing feeling that privacy is slipping away and that even doing the right thing could carry risks.

Filing Taxes Could Actually Help You

Here’s something important that a lot of people don’t realize:

Even undocumented immigrants are required to file taxes if they earn income in the U.S., just like everyone else.

The IRS makes that possible through an ITIN (an Individual Taxpayer Identification Number), which lets people who aren’t eligible for a Social Security number still file and stay compliant with the law.

And here’s the thing:
Filing taxes can actually work in your favor.

It shows good moral character.
It shows you're contributing to society and following U.S. laws.

That can matter a lot if you ever apply for immigration relief or legal status down the line.

Final Thoughts

Right now, fear and confusion are running high.
But understanding the facts can help you make better decisions.

The new IRS-ICE agreement is real, but it’s intended for very specific cases, mainly those with final orders of removal.

For most people, especially those simply filing with an ITIN, the law still protects your tax information.

If you have any questions about your specific situation, talk to a qualified immigration attorney. Stay informed, stay safe, and don’t let fear stop you from doing the right thing.

Thanks for reading, and see you in the next blog post!