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.
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 a preliminary injunction, which is still pending before a judge. This motion would stop any data sharing while the case can be heard in court.
As of April 16, the federal government has stated in court that no IRS data has yet been shared with immigration enforcement authorities.
Legislation to prevent federal immigration enforcement agencies from accessing local street vendor data in California
Inclusive Action for the City is also working to advocate for legislation that would protect immigrant workers’ information. In January 2025, we worked with California State Senator Maria Elena Durazo to introduce 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.