When DHS requests ITIN tax data: Why every American should be concerned

In recent weeks, an unprecedented threat to taxpayer privacy emerged, warranting the attention of every American who values the rule of law and economic stability. The Department of Homeland Security (DHS) formally requested access to the private tax information of 700,000 people who file taxes using Individual Taxpayer Identification Numbers (ITINs). This request strikes at the heart of longstanding legal protections, raising alarming new questions about government overreach. 

The ITIN program was established by the IRS in 1996 for a straightforward reason: Federal law requires all U.S. residents with taxable income to file returns and pay taxes, regardless of immigration status. For nearly three decades, the IRS has explicitly assured these taxpayers that their information would remain confidential. Millions of people — small business owners, entrepreneurs, essential workers and parents of U.S. citizen children — have relied on these assurances and dutifully complied with their tax obligations. 

Federal law under 26 U.S.C. § 6103 is unambiguous: Tax returns and related information must remain confidential. These privacy protections weren’t created arbitrarily — they were enacted in 1976 as a direct response to the Nixon administration’s abuse of IRS records to target political opponents. They stand as a crucial safeguard that protects all Americans from having their financial information weaponized for political purposes. 

“If the IRS can disclose tax information to DHS without congressional authorization, then none of us are safe from wholesale invasions of our privacy,” warns Alan Morrison, an attorney involved in litigation challenging the DHS request.  

Georgetown University Law Professor Dorothy A. Brown has been even more pointed, condemning the targeting of 700,000 individuals based on their names as “racial profiling on steroids.” 

ITIN holders are some of the most dynamic contributors to our economy. In 2022 alone, undocumented immigrants paid nearly $97 billion in federal, state and local taxes. This translates to an average of $8,889 per person annually — money that funds schools, roads, healthcare and other essential services that benefit all communities. 

Even more revealing is how these tax contributions flow. More than one-third ($33.9 billion) goes toward Social Security, Medicare and unemployment insurance — programs that these taxpayers cannot access. Undocumented immigrants paid $25.7 billion in Social Security taxes, $6.4 billion in Medicare taxes and $1.8 billion in unemployment insurance taxes in 2022, effectively subsidizing these critical programs for U.S. citizens. 

These aren’t abstract numbers. They translate to strengthened retirement security for all Americans, as the Social Security Administration itself has acknowledged that these unclaimed contributions help extend the program’s solvency. For every 1 million undocumented immigrants in the U.S., public services receive a remarkable $8.9 billion in additional tax revenue. 

The human dimension of this issue is equally significant. 1 in 6 U.S. citizen children living in poverty has an ITIN-holding parent. These families are deeply integrated into American communities — working, paying taxes and raising children who are U.S. citizens. The DHS request threatens both the privacy of individual taxpayers and the stability of entire households and communities where long-residing families and businesses thrive. 

On March 7, 2025, Centro de Trabajadores Unidos and Immigrant Solidarity DuPage filed litigation in federal court to prevent this unlawful disclosure of taxpayer information. “The DHS attempt to access confidential taxpayer information is not only unjust, it is unlawful,” explains Ana Guajardo, executive director of Centro de Trabajadores Unidos. “These are taxpayers who trusted our government’s promise that their information would remain confidential — a promise backed by federal law.” 

Using IRS resources, personnel or data for immigration enforcement would constitute a clear violation of the agency’s statutory authority. In fact, federal law makes unauthorized disclosure of tax information a felony punishable by up to five years in prison, a fine of up to $5,000 and immediate dismissal from federal employment. There are no explicit exceptions for immigration enforcement purposes. 

The repercussions of allowing this privacy breach would extend far beyond the immediate targets. If tax confidentiality can be violated for one group of taxpayers, the principle of protection weakens for everyone. The precedent would open the door to future breaches based on political expediency rather than legal authority. Tax compliance itself could suffer, as people lose confidence that their information will be protected. 

Americans across the political spectrum have good reason to care about this issue. Those concerned with government overreach and personal privacy, as well as the security of our tax documents, should be alarmed at this attempt to circumvent clear legal boundaries. Those focused on economic stability should recognize the substantial contributions ITIN taxpayers make to our shared prosperity. And those who value the rule of law should insist that federal agencies operate within their authorized parameters. 

As this issue plays out in the courts and potentially in Congress, it serves as a crucial test of whether or not we will uphold the legal principles and economic pragmatism that have long guided our tax system and ensured that those who abide by the law are not penalized after the fact. Protecting ITIN taxpayer privacy is essential to affirming that in America, taxpaying businesses and families are protected by the same crucial respect for the rule of law and personal privacy that ensures the rights of everyone.