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The Trump administration has opened a new front in its pressure campaign against undocumented immigrants in the United States, this time through the Internal Revenue Service (IRS). According to a New York Times report published in May 2026, White House officials are discussing changes to the Individual Taxpayer Identification Number (ITIN) with the agency that could require filers to explicitly disclose their immigration status. Analysts see the move as a signal that using the tax system as an immigration enforcement tool — abandoned for decades — may be making a forceful comeback.
What Is the ITIN and Who Uses It
The ITIN is a nine-digit code issued by the IRS to individuals who need to file federal taxes in the United States but are not eligible for a Social Security Number (SSN). It was created in 1996 specifically to ensure that people outside the Social Security system could still meet their tax obligations.
The ITIN-holder population is broad and diverse. It includes nonresident aliens who owe taxes on U.S.-source income, spouses and dependents of work visa holders, some international students, immigrants with specific legal status, and — in significant numbers — undocumented immigrants who work in the country and pay taxes. In some states, the ITIN is also accepted to open a bank account, apply for a credit card, and even obtain a driver’s license.
The Proposed Change
According to three sources close to the negotiations interviewed by the New York Times, the proposal under consideration would create distinct categories within the ITIN system, separating codes issued to undocumented immigrants from others. In practice, this would require applicants to declare their immigration status when requesting the number.
The measure is an evolution of an earlier idea from the same administration, which had considered adding a direct question about the taxpayer’s immigration status to income tax returns. The ITIN differentiation is seen internally as a legally more palatable path to the same goal: mapping who, within the tax system, lives in the country without documentation.
The Precedent of Data Sharing With ICE
This is not the Trump administration’s first attempt to use IRS data for immigration purposes. In 2025, the White House reached an agreement with the Department of Homeland Security authorizing the sharing of tax information with Immigration and Customs Enforcement (ICE). The plan triggered a wave of resignations among IRS leaders, who alleged it violated federal tax privacy law established in Section 6103 of the Tax Code.
Before courts halted the program, the addresses of approximately 47,000 individuals had been handed over to ICE. In subsequent hearings, immigration officials stated they had not used the data, but the episode left a deep mark on public perception of the IRS as a guardian of sensitive information.
The Fiscal Logic Behind the Dilemma
For decades, the IRS’s internal doctrine was to treat immigration status as irrelevant. The agency’s mission is to collect revenue, and undocumented immigrants pay taxes in substantial amounts. A study by the Institute on Taxation and Economic Policy (ITEP) estimates that this population contributes approximately $60 billion per year in combined federal, state, and local taxes — without having access to most of the benefits those funds support.
Most of this revenue comes from formal employment, where taxes are withheld directly from paychecks. Many of these workers do not even receive refunds, because the ITIN, by law, disqualifies holders from tax credits such as the Earned Income Tax Credit. They support the system without benefiting from it.
The Risk of Pushing Workers Into the Informal Economy
Within the IRS, there is concern that changes to the ITIN would destroy the trust built over decades. If filing taxes becomes equivalent to turning oneself in to immigration authorities, undocumented individuals are likely to leave formal employment and shift to off-the-books work.
The fiscal impact would be significant. Programs such as Social Security and Medicare, funded through payroll contributions, receive substantial contributions from undocumented immigrants who will never be eligible for the benefits. A drop in this revenue would directly affect the sustainability of these systems.
There is no tax reason to know whether someone is undocumented. ITIN holders are already, by law, ineligible for tax credits. Immigration status does not change the obligation to file.
Nina Olson, former National Taxpayer Advocate at the IRS
Other Fronts of the Strategy
The pressure on the ITIN is part of a broader effort to make life increasingly difficult for undocumented immigrants in the United States, with the stated goal of inducing voluntary departure. Other fronts include restricting access to public housing, making it harder to open bank accounts and obtain credit cards, and tightening rules around federal benefits that affect even holders of temporary legal status.
Stephen Miller, Trump’s deputy chief of staff and architect of the administration’s immigration policy, has been coordinating these initiatives. Officials told the New York Times that Miller even questioned how undocumented immigrants use credit cards, signaling interest in restricting access to the financial system as a pressure tool.
What This Means for the International Applicant
For any immigrant living in the United States without stable legal status, the situation calls for strategic reflection. Keeping tax returns up to date has historically been seen as evidence of good standing in future legalization processes, including cancellation of removal and some adjustment of status applications. Abandoning that documentation out of fear could jeopardize future legal pathways.
On the other hand, the expectation that tax data would remain shielded from immigration enforcement is today far less solid than it was five years ago. Every new ITIN applicant — or each renewal — needs to individually assess the risk, ideally with qualified legal counsel, taking into account their immigration profile and prospects for regularization.
What to Watch in the Coming Months
The discussions have not yet resulted in any formal change. The White House has not confirmed the negotiations, and neither the Treasury nor the IRS responded to requests for comment from the New York Times. Structural changes to the ITIN require a regulatory process with a public comment period, which would open the door to legal challenges — especially in light of the protections under Section 6103.
Taxpayer advocacy organizations and entities such as the Center for Taxpayer Rights have already signaled their intent to litigate any initiative that ties immigration status to tax obligations. The recent trajectory of legal actions related to data sharing with ICE suggests that federal courts have shown a willingness to block the use of the tax system as an immigration enforcement tool.
Victoria Harper
Editor-in-Chief
Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.
