IRS & ICE Enters Memorandum of Understanding (MOU) - HR ALERTS

IRS & ICE Enters Memorandum of Understanding (MOU)

Effective: N/A

The U.S. Department of Homeland Security (DHS), working on behalf of the U.S. Immigration and Customs Enforcement (ICE), has recently entered into a Memorandum of Understanding (MOU), with the IRS.

What Does This Mean?

The MOU indicates that the IRS will disclose taxpayer information to ICE in regard to pursuing immigration cases. They are only able to disclose certain information for taxpayers who are under criminal investigation or subject to criminal proceedings; information that may be released includes Individual Taxpayer Identification Numbers (ITINs), wage filings, and employer-submitted forms such as W-2s and 1099s.

This information cannot be used for civil immigration enforcement or for deportation proceedings, but it is expected to provide additional information for investigations into document fraud, identity theft, and unauthorized employment.

What Employers Should Know:

While employers are not required to take action due to this MOU, it is important to note the administration cracking down on immigration in regards to areas such as taxes and payroll. This may mean a closer look at businesses’ compliance with immigration laws, which can result in fines or other legal implications should an employer not be compliant.

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