Immigration policy changes under the Trump administration could significantly impact federal tax revenue, according to tax experts who warn that enforcement measures may discourage undocumented workers from filing returns.

Tax advisers report that proposed data sharing between the Internal Revenue Service and immigration enforcement agencies has created uncertainty for undocumented immigrants who previously filed tax returns. The potential for information sharing with Immigration and Customs Enforcement has made the filing process riskier for this population.

Experts estimate the federal government could lose up to $479 billion in tax revenue over the next decade if undocumented workers stop filing returns due to enforcement concerns. This projection assumes current immigration policies continue to deter tax compliance among undocumented populations.

Additional policy changes have removed certain tax benefits previously available to immigrant parents, further reducing incentives for this group to participate in the tax system. These modifications represent a shift from previous approaches that encouraged tax filing regardless of immigration status.

Separately, the Brookings Institution has released research suggesting that federal statistics may undercount family separations during immigration enforcement operations, noting that immigrant parents may not disclose information about their American-born children to authorities.