Confirmed: The IRS Will Hit Taxpayers with $5,000 Penalties for Certain Actions on Tax Returns

By Ronald Rodriguez Last updated Feb 28, 2025

Your CNS –

In a groundbreaking move that could reshape the Internal Revenue Service’s (IRS) role in US immigration policy, the Department of Homeland Security (DHS) has asked the Treasury Department to allow IRS-CI agents to assist in immigration law enforcement tasks.

According to The Wall Street Journal and The Washington Post, Homeland Security Secretary Kristi Noem made the request. The goal is to use these agents’ experience in financial investigations to combat human trafficking networks and businesses that employ undocumented immigrants.

Human Trafficking: The IRS-CI agents’ skills could be pivotal in dismantling human trafficking operations.
Employment of Undocumented Immigrants: Companies hiring undocumented workers might face increased scrutiny.

Confirmed | The IRS will impose a USD 5,000 penalty on taxpayers who engage in specific actions on their tax returns.

The IRS Criminal Investigation Division (IRS-CI) has an impressive 2,290 special agents, a 10% increase from 2022, according to their 2024 annual report. These agents are not only skilled at making arrests and carrying firearms, but they are also capable of handling complex investigations.

Attention Immigrants: IRS Monitors These Taxpayers

Over the last year, these skilled agents have successfully discovered more than $2.1 billion in tax fraud and an additional $7 billion in financial crimes, thanks to their expertise in tracking money flows.

This capability makes them an invaluable asset to Immigration and Customs Enforcement (ICE) in its fight against illegal activities associated with irregular immigration.

IRS Disburses $1,400 Stimulus Checks to Eligible Taxpayers This Week

The Internal Revenue Service works with the government on deportation efforts. Source: Archive.

Concerns About IRS Involvement in Immigration Operations

However, attorneys have expressed concern about the IRS’s potential involvement in immigration operations. They point out that the tax agency has a strict policy of not sharing information with ICE, except in cases involving specific criminal investigations.

Section 6103 of the Internal Revenue Code establishes strict safeguards to protect taxpayer privacy. However, these regulations may change if Congress passes new legislation allowing for the sharing of tax data with other agencies.

Donald Trump’s Plan to Use the IRS for Deporting Immigrants

The primary goal of this initiative is to strengthen efforts to control illegal immigration and to carry out Donald Trump’s promise to involve various federal agencies in enforcing immigration laws.

The government had previously approved the participation of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the United States Marshals Service.

In a memorandum, Kristi Noem stated to Treasury Secretary Scott Bessent that the Department of Homeland Security (DHS) recognizes the IRS Criminal Investigation (IRS-CI) unit’s ability to assist in financial investigations and immigration operations. This is especially significant in light of the 2022 budget expansion, which enabled an increase in their workforce.