The IRS-ICE data-sharing agreement, signed on April 7, 2025, marks a major change in U.S. tax and immigration policy. It is both historic and controversial, with broad effects on how information returns—including Forms 1042-S, 1099, and W-2—are filed, verified, and enforced.
Key Facts About the Agreement
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Signed by: Treasury Secretary Scott Bessent and DHS Secretary Kristi Noem
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Effective date: April 7, 2025
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Purpose: Allows Immigration and Customs Enforcement (ICE) to access select IRS taxpayer data
What Data ICE Can Access
Under the agreement, ICE can review:
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Tax filings using ITINs (Individual Taxpayer Identification Numbers)
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Information returns, including Forms 1042-S, 1099 series, and W-2
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Withholding data and treaty benefit claims
When the Agreement Applies
ICE can use IRS data when:
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Pursuing immigration enforcement against individuals with final deportation orders
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Conducting criminal investigations involving fraud or identity misuse
Why It Matters for Information Returns
This agreement makes tax data a potential tool for immigration enforcement. The IRS will share information return data with ICE in certain cases.
If someone files a tax return or appears on a form—such as a 1042-S or 1099—using an ITIN or a potentially false Social Security number, ICE can use that data to:
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Track income and employment
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Check for violations of immigration law, such as visa overstays or unauthorized work
The Bigger Picture
Information returns show who got paid, how much they earned, and whether taxes were withheld. With this agreement, those forms now play a role beyond tax compliance. They can also trigger immigration investigations.