The Trump administration is urging the Internal Revenue Service to modify how undocumented immigrants file taxes, potentially requiring disclosure of immigration status through Individual Taxpayer Identification Numbers. Current ITINs allow millions without Social Security numbers to pay federal taxes, contributing an estimated $60 billion annually to government revenue.

IRS officials worry that singling out undocumented filers could undermine the agency's core mission of maximizing tax collection. The proposal follows last year's failed attempt to share taxpayer data with Immigration and Customs Enforcement, which led to leadership resignations and court intervention halting the program.

Critics argue that targeting undocumented taxpayers threatens long-term fiscal health, as reduced compliance could push workers off the books entirely. Undocumented immigrants often have taxes withheld from paychecks, and filing returns can yield refunds when overpayments occur.

Former IRS Commissioner Mark Everson emphasized that policymakers should avoid actions discouraging voluntary tax compliance, particularly among workers who already contribute substantially to Social Security and Medicare through payroll taxes.