A recent agreement between the Internal Revenue Service and Immigration and Customs Enforcement could result in billions in lost annual revenue, NBC News reported on Tuesday.

Last week, an agreement signed by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem allowed for the IRS to share tax data of illegal migrants with Homeland Security personnel. The agency has agreed to turn over information about undocumented immigrants who DHS says are already facing deportation orders and are under federal criminal investigation, including for the crime of failing to leave the country. Sources said the agreement was one of several reasons that prompted acting IRS commissioner Melanie Krause to announce her resignation.

Critics argue the move could result in nearly $100 billion in lost annual revenue. According to the Institute on Taxation and Economic Policy, illegal immigrants paid $96.7 billion in state, federal, and local taxes in 2022. With roughly $59.4 billion of that figure going to the federal government and $37.3 billion going to state and local governments, the institute assumes that if only 10% of illegal immigrants forgo their tax filings this year the government will lose $9.5 billion in revue.

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