A group of immigration and tax advocates have sued to block two federal agencies from sharing taxpayer information with U.S. Immigration and Customs Enforcement, arguing that sharing that data violates privacy laws and may lead to wrongful arrests.
The lawsuit, filed in Boston’s federal court, states that the Internal Revenue Service and Social Security Administration (SSA) have both agreed to share immigrants’ addresses and other personal information with ICE.
“It is a shocking revelation that the Social Security Administration has also agreed to send private taxpayer data to ICE for immigration enforcement,” said Greater Boston Legal Services senior attorney Luz Arévalo. “It is shocking because the SSA holds the earnings records for virtually every worker in the U.S. We had to file this case to remind both agencies that our confidentiality laws apply to them both and that their sharing is unlawful.”
The case was filed by Asian Law Caucus, Greater Boston Legal Services and Keker, Van Nest, & Peters LLP in the U.S. District Court for the District of Massachusetts on behalf of Community Economic Development Center of Southeastern Massachusetts, the National Korean American Service and Educational Consortium, National Parents Union, and Undocublack Network.
The Social Security Administration and IRS didn’t return request for comment.
The lawsuit alleges that the IRS and SSA agreed to share tens of thousands of records. The plaintiffs note that the IRS provided ICE with information on about 50,000 individuals after receiving a request this summer. The lawsuit also cites a letter that allows ICE to request Social Security records for 50,000 immigrants each month.
The plaintiffs say the agencies violated strict privacy protections by handing over sensitive taxpayer data, and that ICE’s continued use of that data for civil immigration enforcement breaches privacy laws. Nixon-era tax law provides protection of data sharing for taxpayers. Plaintiffs also allege that the IRS is violating its own taxpayer bill of rights from 2014. Under normal rules, data can be shared only for case-by-case criminal investigation and prosecution, not for immigration detention and deportation.
They’re seeking temporary and permanent injunctions to stop any sharing and receipt of information.
An agreement between the IRS and ICE shows that personal addresses and financial information is now being shared, and used for detention purposes.
“To use their tax information and their tax filings against them is something that’s totally new. I mean, there have been assurances over time,” said Angela Divaris, attorney at the Greater Boston Legal Services tax clinic. “That their tax data is protected, just like everybody else.”
Plaintiffs’ arguments lean on the federal government allegedly violating the Administrative Procedure Act, the First Amendment, and law that doesn’t allow agencies to act outside of their authority. The legal challenge builds on records obtained through a prior Freedom of Information Act lawsuit, which Asian Law Caucus in San Francisco and GBLS, filed on behalf of CEDC.
For years, immigrants without a social security number have applied for an ITIN, or individual tax identification numbers that lets them pay taxes. Immigrants of varying statuses can apply for an ITIN. ITIN holders aren’t eligible for most tax benefits like Social Security and Medicare, but most pay into it if they have payroll taxes.
In 2022, immigrants without legal status paid nearly $650 million in Massachusetts’ state and local taxes, according to the Institute of Taxation and Economic Policy.
Brian Pastori is deputy director at Community Economic Development Center of Southeastern Massachusetts, which works with immigrants to acquire ITIN numbers, and pay taxes. He says there’s been a 73% drop in immigrants applying for ITIN this year.
“People who file their taxes here at our office have been detained by ICE. No one has said to us directly, 'I think it’s because of my taxes,'” he said. “But we don’t know because ICE has not been forthcoming about how they’ve used this information.”
The complaint mentions the conundrum CEDC in New Bedford is in, describing it as a “dilemma.”
“As a government-supported site, it cannot advise immigrants not to file tax returns despite immigration consequences,” the complaint reads. “Simultaneously, as a mission-based organization committed to supporting the local community, CEDC cannot encourage immigration to file tax returns knowing they will risk deportation.”
Two other lawsuits related to taxpayer data sharing are also working their way through federal court. Both have allowed information transfers to move forward, said Divaris.
A Department of Homeland Security official told GBH News in a statement that the IRS-ICE memorandum of understanding has been “deemed lawful by a federal court.”
“The MOU outlines a process to ensure that sensitive taxpayer information is protected, while allowing law enforcement to effectively pursue criminal violations,” the official wrote. “After four years of Joe Biden flooding the nation with illegal aliens, these processes streamline pursuit of violent criminals, scrub these individuals from voter rolls, identify what public benefits these aliens are using at taxpayer expense, all while protecting American citizens’ safety and data.”
