How Do Undocumented Immigrants Pay Taxes as IRS and ICE Negotiate Data Sharing?" (149 characters) This version keeps the key question engaging

# **IRS & ICE Data Deal: How Undocumented Immigrants Pay Taxes**

The IRS is reportedly moving closer to sharing taxpayer data with Immigration and Customs Enforcement (ICE), raising concerns about privacy and trust in the tax system. But one question lingers: **how do undocumented immigrants pay taxes in the first place?**

## **The Reality of Undocumented Immigrants & Taxes**

Contrary to popular belief, many undocumented immigrants pay taxes—contributing billions annually to federal and state revenues. Here's how it works:

### **1. Using an Individual Taxpayer Identification Number (ITIN)**
- The IRS issues **ITINs** to individuals who don’t qualify for a Social Security Number (SSN) but still need to file taxes.
- ITINs allow undocumented immigrants to legally pay taxes without fear of immediate deportation.
- Over **4 million ITINs** were in use as of 2021, generating significant tax revenue.

### **2. Payroll & Income Taxes**
- Many undocumented workers pay taxes through payroll deductions using fake or borrowed SSNs.
- Employers still withhold taxes, but the workers won’t benefit from Social Security or Medicare.
- The **Social Security Administration** estimates that unauthorized workers contributed **$13 billion** in payroll taxes in 2019 alone.

### **3. Sales & Property Taxes**
- Undocumented immigrants contribute to state and local economies through **sales taxes** on purchases.
- Those who rent or own homes also indirectly pay **property taxes** included in rent or mortgage payments.

## **IRS & ICE Data Sharing: Potential Consequences**

If the IRS shares taxpayer data with ICE:
- **Fear of Filing Taxes** – Many may stop paying taxes, leading to revenue losses.
- **Privacy Violations** – Some argue it breaches trust in the tax system.
- **Workforce Impact** – Industries relying on undocumented labor (agriculture, construction, hospitality) could face instability.

## **Are Undocumented Immigrants Eligible for Tax Benefits?**
- No **stimulus checks** or **Earned Income Tax Credit (EITC)** for ITIN filers.
- However, some states (like California) offer their own tax credits to ITIN holders.

## **What Do You Think?**
- Should the IRS share taxpayer data with ICE if it means lower tax compliance?
- Are undocumented immigrants paying their "fair share" of taxes?
- Should ITIN filers qualify for benefits like stimulus checks?
- Does this potential policy unfairly target vulnerable workers?

**Let us know in the comments—do you support the IRS-ICE data deal?**