Millions of undocumented immigrants, often referred to as “illegal aliens,” live and, in some cases, work in the United States. Despite their lack of lawful immigration status, these individuals may still have tax obligations in the U.S. This is because the U.S. tax system operates independently of immigration enforcement, meaning that tax filing requirements exist regardless of immigration status.
Many undocumented immigrants file tax returns to demonstrate their good moral character. This is important for two reasons: first, it may help them if they are ever arrested and face deportation proceedings; second, it may benefit them if they become eligible to legalize their immigration status in the future. This may occur due to changes in U.S. laws or the establishment of new family relationships with U.S. citizens.