Update: Does the IRS have access to the USCIS immigration data for “current” and “former” lawful permanent residents (LPRs)?
This is a question that concerns those non-U.S. citizens who are aware of the IRS prior position in pursuing tax penalties and adverse tax positions against the millions of “LPRS” residing outside of the United States. The concern stems from the way the government handled cases such as Mr. Alberto Aroeste where more than $3M of information penalties were assessed when very little income tax was assessed and the U.S.- Mexico income tax treaty was ignored. See, 2023 report to Congress by the Taxpayer’s Advocate and footnote 10, reported in Most Serious Problem #9 – COMPLIANCE CHALLENGES FOR TAXPAYERS ABROAD.
Footnote #10: For a recent case illustrating the complexity of applying statutory requirements and treaty provisions, see Aroeste v. United States, No. 3:22-cv-00682, 2023 WL 8103149 (S.D. Cal. Nov. 20, 2023) (holding that a Mexican citizen with U.S. lawful permanent residency status was not a “U.S. person” required to file a Report of Foreign Bank and Financial Accounts).
A prior post explained a bit about the Treasury Department’s TECs database system. See, Should IRS use Department of Homeland Security to Track Taxpayers Overseas Re: Civil (not Criminal) Tax Matters? The IRS works with Department of Homeland Security with TECs Database to Track Movement of Taxpayers. The explanation in the IRM was updated largely in 2018.
A follow-up post will help address the question raised in the title of this post.