The IRS plan to expose data on undocumented workers threatens nearly $100 billion in tax collections.

The article discusses the potential implications of a proposal allowing Immigration and Customs Enforcement (ICE) to access Internal Revenue Service (IRS) taxpayer data, which experts believe could discourage undocumented immigrants from paying taxes. In 2022, undocumented immigrants contributed $97 billion in federal and state taxes, often filing returns to support their cases for legal residency. Experts warn that if taxpayer data is perceived as accessible to immigration authorities, compliance may decline significantly, leading to a potential loss of tax revenue and a shift towards under-the-table work among immigrants. The article highlights concerns about the traditional confidentiality of IRS data and the broader impact on tax collection amidst ongoing staffing cuts at the IRS. [Extracted from the article]