"Our target is the Latino community, and many people didn't file taxes because of fear of ICE. They said: If they can deport me, what am I filing taxes for?' Schmidt said this tax season, she has lost as many as 75% of her clients at Crece Latino, the tax service firm she owns in Springfield Virginia."
"Last year, the Internal Revenue Service (IRS) made an agreement to share the names and addresses of undocumented immigrants with the Department of Homeland Security, the parent agency of ICE. Though a federal judge paused the data-sharing agreement in November and later ruled that it violated federal law, many are still worried about having their information passed to ICE."
"Parents without legal status also became ineligible for the child tax credit in 2025, even if their children are US citizens, which typically amounts to thousands of dollars in savings. Immigrants who are not legally authorized to work in the US are still required to pay taxes, and a lon"
An immigration crackdown is linked to reduced tax filing among undocumented immigrants. Tax advisers report clients refusing to file due to fear that enforcement could lead to deportation. Proposed and past data-sharing efforts between the IRS and Homeland Security have increased concerns that personal information could be passed to ICE, even after legal challenges. Changes to tax benefits also reduce incentives to file, including removal of eligibility for the child tax credit for parents without legal status in 2025, even when children are US citizens. Undocumented immigrants who are not authorized to work are still required to pay taxes, but fear and reduced benefits lead to lower participation and potential large revenue losses.
#immigration-enforcement #tax-compliance #undocumented-immigrants #irs-data-sharing #child-tax-credit
Read at www.theguardian.com
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