IRS to Lose Billions in Revenue If Migrants Stop Filing Taxes

The Internal Revenue Service is projected to lose more than $313 billion in revenue in the coming decade as undocumented workers are poised to pay fewer taxes after the agency struck a deal to share data with US immigration authorities.

The IRS is expected to lose $12 billion in revenue for the remainder of the fiscal year ending Sept. 30, according to a report out Tuesday by the Yale Budget Lab. The group estimates unauthorized workers paid about $66 billion in federal taxes in fiscal year 2023, with about two-thirds of that coming from payroll levies.