"Martha Valencia, a tax preparer in Sonoma County, reports a 60% drop in clients this year, stating, 'Not even in the pandemic I had a drop like this.' Many customers come in feeling worn-down and lacking a vision for future immigration relief, expressing a declining faith in the system."
"Hayde Vigil, a tax preparer in Pomona, notes her business is seeing about half its usual filings this year. The fear among immigrant taxpayers is palpable, with concerns that taxpayer information could be shared with other departments, leading to a loss of trust in the ITIN system."
"Experts warn that if undocumented immigrants disengage from the tax system, the consequences would be severe, with estimates suggesting an $8.5 billion loss in revenue from state and local tax contributions made by undocumented Californians in 2022."
Tax preparers in California report unprecedented declines in clients from immigrant communities, with some experiencing up to a 60% drop. Many clients express a lack of faith in the system and uncertainty about future immigration relief. Concerns about taxpayer confidentiality and recent federal policy changes have exacerbated fears, leading to disengagement from the tax system. Experts warn that this disengagement could result in an $8.5 billion loss in revenue, highlighting the severe long-term implications for state and local tax contributions.
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