Published: 17 April 2025 | by Robert S. Teachout, Brightmine Legal Editor
The IRS will share information with U.S. Immigration and Customs Enforcement (ICE) about certain immigrant taxpayers without legal status, under a new Memorandum of Understanding (MOU) between the IRS and the Department of Homeland Security (DHS).
The MOU creates a framework that allows ICE or DHS to provide the IRS with names and addresses of taxpayers living in the United States without legal status who have final removal orders or are under criminal investigation. Then, the IRS will cross reference those names and addresses with existing taxpayer data and provide the resulting information to ICE.
An undocumented worker who wishes to pay taxes can apply for an Individual Taxpayer Identification Number (“ITIN”) and use it to report earned income to the IRS. The IRS maintains the data on these registered undocumented persons who pay federal taxes.
Having access to this undocumented worker pay data will provide the DHS and ICE an additional source of intelligence that can help identify companies that employ undocumented workers. The MOU does not state when information-sharing between the agencies will start.
To minimize liability in the event of an ICE subpoena for documents or an unexpected workplace raid, employers need to ensure compliance with the identity and work authorization requirements of Form I-9, advises attorney Alyson Waite of Benesch. This advice comes as ICE Acting Director Tom Homan has announced that federal agents will start increasing worksite enforcement in sanctuary cities.
“In addition, employers should expect the revival of Social Security Administration (SSA) no-match letters,” warns Waite. “These letters are issued to employers advising that the name or Social Security number reported for one or more employees does not match a name or SSN combination reflected in SSA’s records.” She cautions employers not to use the letters as evidence of immigration status and to notify affected employees.
“Employers also should have a plan in place to terminate employees who are unable to establish continued authorization to work in the US,” Waite said.
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About the author
Robert S. Teachout, SHRM-SCP
Legal Editor, Brightmine
Robert Teachout has more than 30 years’ experience in legal publishing covering employment laws on the state and federal level. At Brightmine, he covers labor relations, performance appraisals and promotions, succession and workforce planning, HR professional development and employment contracts. He often writes on the intersection of compliance with HR strategy and practice.
Before joining Brightmine, Robert was a senior HR editor at Thompson Information Services, covering FMLA, ADA, EEO issues and federal and state leave laws. Prior to that he was the primary editor of Bloomberg BNA’s State Labor Laws binders and was the principal writer and editor of the State Wage Assignment and Garnishment Handbook. Robert also served as a union unit leader and shop steward in the Washington-Baltimore Newspaper Guild of the Communications Workers of America. Actively involved in the HR profession, Robert is a member of SHRM at both the national and local levels, and gives back to the profession by serving as the communications vice president on the board of his local chapter.