By Mary Sanchez
How about a round of “Who said it?”
– “We have been unable to crack down on the multitude of tax-exempt foundations that feed left-wing political causes.”
– “We have been unable to obtain information in the possession of the IRS regarding our political enemies.”
– “Don’t know what the law says, but clearly registering Black teenagers and Mexican-American teenagers is not an enterprise that is going to be advantageous in November; and it should not be done with either tax-exempt or corporate funds.”
The quotes are from those who seek to weaponize taxpayer data, and they aren’t from the current administration, nor are they from President Donald Trump’s pals at DOGE. Although, it’s hardly a stretch to believe that Trump wants control of sensitive personal information so he can use it against his perceived enemies.
The quotes are from former President Richard Nixon’s era. White House counsel John Dean said the first two, and Nixon’s advisor Pat Buchanan uttered the third. The latter wrote about his dismay that Black and brown teenagers were being encouraged to become voters through projects funded by philanthropic dollars.
Nixon and his supporters dearly wanted to politicize the Internal Revenue Service (IRS). They wanted the ability to hand an enemies list to the IRS and have those people or organizations put under the microscope of tax investigators.
Reforms came after Watergate, and after Nixon’s resignation over the scandal.
Decades later, there’s a new president, with a similarly devious intent. It’s also tax season, with the April 15 deadline fast approaching .
The tariff drama has kept most Americans on the edge of their seats. But while most were focused on the markets, the Trump administration managed a procedural coup, picking away at barriers intended to protect taxpayer privacy.
Trump used a proven winning formula: Go after immigrants first. Apathy about their plight will keep critics at bay.
On April 7 an agreement was reached between the IRS and the Department of Homeland Security stipulating that tax information will be shared between the agencies for the purpose of deporting immigrants.
The IRS staff had to be brow beaten into submission. Top IRS leadership announced their resignations in opposition.
Immigrants might now see their tax filings, home addresses, places of employment, earnings, and other data used against them in deportation cases. The government claims that this will happen sparingly, involving only immigrants with prior orders to leave the country, or who the government is investigating.
That’s a wide net. And it severely undercuts existing law and standards on confidentiality on tax filings. The Trump administration would rather chase immigrants out of the country than collect their tax dollars.
It’s a calculation, a statement on Trump’s obsession with immigrants, regardless of the negative consequences for the nation. This opens a door to abuse.
The administration has already admitted mistakes in its ramped up efforts to deport the estimated 11 million undocumented immigrants from the country.
The only upside to the data-sharing agreement between Immigration and Customs Enforcement and the IRS is an opportunity to educate.
Undocumented immigrants have long paid into the tax system. In 2023, they paid $66 billion in federal taxes, according to the Yale Budget Lab. They do so largely through payroll deductions, but since 1996, also through an Individual Taxpayer Identification Number (ITIN).
The ITIN is a 9-digit number, assigned by the government for the purpose of tax collection from people without a social security number.
If that sounds contradictory, welcome to the federal government.
Everyone who is working is expected to pay income taxes, even immigrants who might be doing so without legal status.
The same government has proven unwilling to allow enough pathways for those workers to legalize, but Uncle Sam wants his taxes, nevertheless.
For decades, undocumented immigrants have paid in, with the assurance that doing so wouldn’t be used against them. Many pay the taxes with the hope of establishing a history of doing right by the government, of being good citizens without U.S. citizenship.
Undocumented people don’t collect Social Security or most government benefits. They’re not eligible. They pay in, but they don’t take out.
By some calculations, they are keeping the system afloat for the baby boomer generation, which is retiring in droves and needing their benefits, while the workforce is no longer supported by equal numbers of workers in the labor market, largely due to declining birthrates.
That could change if people find that their willingness to play by the rules can be used against them or their neighbor.
The agreement between ICE and the IRS cracks longstanding safeguards on taxpayer privacy.
Don’t be surprised if the administration begins placing more people under scrutiny – legal immigrants, U.S. citizens, or anyone Trump feels vindictive toward.
(Readers can reach Mary Sanchez at msanchezcolumn@gmail.com and follow her on Twitter @msanchezcolumn.)
