The Internal Revenue Service unveiled a draft of the 2026 Form 1040 that includes a new yes-or-no question about a taxpayer’s citizenship or legal work status. The question, placed under the filing status section in a box titled “other information,” asks: “At the time you file your return, are you, and your spouse if filing jointly, a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the U.S.?”
If the draft becomes final, it would be the first time the IRS directly asks filers about citizenship or work authorization on the standard individual income‑tax return. The form would be used for tax returns filed in the 2027 tax season covering the 2026 tax year.
Legal and policy context
Legal analyst Joseph Malouf noted that the question could be tied to eligibility determinations for several federal tax credits, including the Child Tax Credit, the American Opportunity Tax Credit, the Earned Income Tax Credit, and the Adoption Tax Credit. In August, the Treasury Department and the IRS proposed regulations that would limit eligibility for these credits, citing a need for more accurate data.
Malouf warned that the proposal may face legal challenges under federal statutes that protect taxpayer confidentiality. Section 6103 of the Internal Revenue Code generally safeguards tax‑return information, allowing sharing only under narrowly defined exceptions.
Privacy and enforcement concerns
The draft also raises questions about how the IRS might share the collected data with other agencies. A prior agreement between the Treasury Department and the Department of Homeland Security would permit Immigration and Customs Enforcement (ICE) to request certain taxpayer information and cross‑reference it with immigration records. A federal judge previously found that the IRS had illegally disclosed taxpayer data to ICE, underscoring the sensitivity of such information.
Malouf further raised Fifth Amendment concerns, arguing that requiring illegal immigrants to admit their status on a tax form could be self‑incriminating. He warned that the question might deter some individuals from filing returns out of fear of deportation.
Potential impact on taxpayers
Critics fear that the added question could discourage compliance among illegal immigrants, potentially reducing overall tax revenue and undermining the integrity of the tax system. Supporters of the measure argue that accurate citizenship data is essential for correctly allocating limited tax credits and ensuring that benefits reach eligible U.S. citizens and lawful residents.
The IRS has not yet responded to inquiries from media outlets about the rationale behind the proposed question or how the information would be used. The draft remains subject to public comment before any final rule is issued.
Original reporting: Dallas TX News (HLL/CB) — read the source article.
