Inclusive Action fights to protect immigrant workers and entrepreneurs

Potential data sharing between the Internal Revenue Service (IRS) and immigration enforcement

In early 2025, the Trump Administration issued a slew of Executive Orders, including calling for the removal of immigrants “who enter or remain in violation of federal law.” Shortly after, they shared their intention to use confidential taxpayer information held by the Internal Revenue Service (IRS) to assist immigration enforcement agencies in identifying and locating undocumented immigrants for deportation.

This plan would target taxpayers who use an Individual Taxpayer Identification Number, known as an ITIN, often used by undocumented workers and small business owners without a Social Security Number to file their taxes, start businesses, and participate in many aspects of society and the economy. In 2023 alone, undocumented immigrant households contributed $89.8 billion in taxes, with $55.8 billion going to federal income taxes and $33.9 billion to state and local taxes. These figures don’t include all the businesses and jobs created using ITIN, which make the true value of the economic impacts even more significant.

This proposed data sharing action is unlawful. For decades, the IRS has upheld the principle that all taxpayers, regardless of their immigration status, deserve to have their taxpayer information secure and confidential.

Legal and Legislative Action

Lawsuit to challenge the federal government and protect undocumented immigrant taxpayers

In March 2025, Inclusive Action for the City joined a lawsuit against the federal government to prevent the IRS from illegally turning over taxpayer data to immigration enforcement authorities and exposing undocumented immigrant workers for deportation. This case is officially named Centro de Trabajadores Unidos v. Bessent.

Inclusive Action joins three other co-plaintiffs in the lawsuit, Centro de Trabajadores Unidos, Somos Un Pueblo Unido, and Immigrant Solidarity Dupage, organizations that serve immigrant workers in New Mexico and Illinois. The experienced legal team leading the case includes the national nonprofit consumer advocacy group Public Citizen, Alan Morrison, and Raise the Floor Alliance.

Case status: Plaintiffs filed a motion for an injunction, which would halt the data breach while our case can be heard in court. While the motion was denied, plaintiffs have filed for an appeal with the D.C. Court of Appeals to continue our urgent work to get an injunction before IRS data is given to ICE.

Legislation to prevent federal immigration enforcement agencies from accessing local street vendor data in California

Inclusive Action for the City is also advocating for legislation that would protect immigrant workers’ information. We are working with California State Senator Maria Elena Durazo to advance Senate Bill 635, a bill that would prohibit California cities and counties from sharing street vendors’ ITIN data and other personally identifying information with federal immigration enforcement agencies, absent a judicial warrant or court order. 

Inclusive Action is co-sponsoring this bill, along with the Coalition for Humane Immigrant Rights Los Angeles (CHIRLA), Community Power Collective, Inland Coalition for Immigrant Justice, and Public Counsel.

History of Individual Taxpayer Identification Number (ITIN)

In the 1990s, the federal government created the Individual Taxpayer Identification Number (ITIN) system as an alternative for individuals without a Social Security Number (SSN) to be able to file their taxes. In the almost 30 years this program has existed, millions of people have used this system to work, start small businesses, file taxes, purchase homes, access educational opportunities and resources, and more. In California, and many other states, ITIN is not just a tool to pay taxes, it is also a key to unlocking access to the economy through driver’s licenses, business permits, professional licenses, and many other programs.

Each year, undocumented workers contribute almost $100 billion in federal, state and local taxes. They also start businesses that create local jobs and fuel economic growth. Inclusive Action is proud to work with immigrant entrepreneurs and small business owners – including many ITIN holders – to provide loans, business coaching, and other services to launch and grow businesses. Our organization also advocates for laws and policies that expand access to the economy for immigrants – for example, a pair of state laws that enable tens of thousands of California street vendors to formalize their business using ITIN.

We believe that undermining trust in our tax system by sharing ITIN holders’ personal information with Immigration and Customs Enforcement (ICE) would destroy lives and tear families apart. It would have disastrous consequences for our communities and economy – closing businesses, losing jobs, and blocking pathways to entrepreneurship.

Resources for Individuals Using ITIN

*Please note: This information is for educational purposes only and should not be construed as legal advice. If you are an ITIN holder or are considering applying for one, please keep in mind that each situation is unique. Please consult with your immigration and/or tax attorney for guidance specific to your circumstances.

The Rights of Immigrants

Everyone in the U.S., regardless of immigration status, has certain basic rights under the U.S. Constitution. Among these is the right and responsibility to file state and federal taxes. For decades, the IRS has upheld strict confidentiality standards, ensuring that all taxpayer information remains protected.

Filing for ITIN

We strongly encourage undocumented individuals who want to apply for an ITIN for the first time to consult with qualified immigration attorneys and trusted tax professionals, especially if any of the following apply:

  • You have a final order of removal

  • You are under criminal investigation, including for overstaying a deportation order

  • You have had any prior contact with ICE or the Department of Homeland Security (DHS)

If you already have an ITIN and have concerns about the IRS having your information, consider seeking assistance from a Volunteer Income Tax Assistance (VITA) site and an immigration and tax attorney. Consulting with an attorney allows you to make informed choices that protect yourself and your family.

Educational and legal support: