SAN YSIDRO, Calif. (KGTV) – Tuesday, April 15, is the final day to file your income taxes, and at the top of mind for many taxpayers is how much they owe or how much they will be refunded.
But for undocumented residents in San Diego County and across the U.S., their first thought has nothing to do with money at all.
Many are worried about the possibility of deportation if they file their taxes. According to court filings by the Department of Homeland Security, the Internal Revenue Service recently agreed to share sensitive information with ICE as part of President Trump's push for mass deportations of undocumented immigrants.
The agreement is a break in decades-long stance for the IRS, which previously refused to share taxpayer information with other agencies. A decrease in tax filings by undocumented immigrants could lead to billions of dollars lost in tax revenue, some financial experts said.
According to the Institute on Taxation and Economic Policy, a nonprofit and nonpartisan tax policy organization, undocumented Californians paid nearly $8.5 billion in state and local taxes in 2022. Across the U.S., undocumented residents paid nearly $60 billion in federal taxes last year.
The total revenue in federal, state, and local taxes rounded out to $96.7 billion.
The same report shows that for every 10% of undocumented immigrants who decide not to file taxes, a total of $9.5 billion in tax revenue is at risk of being lost.
Lupita G. Fernandez & Associates has been helping clients file taxes in San Diego County for more than 50 years. According to office manager Karla Vidrio, their busiest month during tax season is February. This year, however, the office saw a drastic decrease in clients.
"They're scared because they don't want people knocking at their front door," Vidrio said. "It's been tough on all of us, honestly, because we don't want to see our clients get deported, especially when we know they're doing the right thing.”
While Vidrio understands the heightened fears from her clients, the office is urging their clients to file. It's a difficult conversation, but in certain ways, it's a must-do.
"At the same time, we are professionals. We have to tell them what the role is and what the law requires," Vidrio said.
Vidrio and her office are working with clients to file extensions to give them more time to decide on filing taxes as they navigate this period of uncertainty with immigration enforcement.
“An extension is always a possibility. However, we have to remind clients that extensions are for documents, not necessarily for money," Vidrio said. "If you owe money, April 15 is still the deadline to pay that money. However, in those situations where some clients are unsure whether they should file or not, we are sending extensions.”
More Tax Day coverage:
