
Immigrants in the United States holding H-1B and other temporary visas are facing fresh deportation risks as tax filings are increasingly being used by immigration authorities to flag unauthorized work.
A Times of India report by Lubna Kably reveals that data sharing between the Internal Revenue Service (IRS) and Immigration and Customs Enforcement (ICE) has intensified, and tax returns are now being scrutinized for signs of status violations.
Immigration attorneys say that income reported years earlier — particularly from side jobs taken while on student or work visas — is now resurfacing as grounds for visa denials, entry refusals, and even removal proceedings.
H-1B visa holders are especially vulnerable, as their work authorization is tied strictly to their sponsoring employer.
Tax Returns as Evidence of Unauthorized Work
Attorney Jath Shao told The Times of India that IRS data is actively being shared with immigration enforcement.
“We are starting to see people getting charged for unauthorized work — work they actually reported and paid taxes on,” he said.
Shao explained that individuals are being questioned at consulates and ports of entry about jobs held years earlier, often during their student visa period.
Even minor infractions, such as traffic violations, have triggered deeper background checks, leading to the discovery of such past income.
Extreme Vetting Extends Oversight
Immigration attorney Kripa Upadhyay linked the trend to the “Extreme Vetting” framework introduced under the Trump administration, which extended monitoring of visa holders beyond visa issuance. She noted that small violations, once overlooked, are now being coordinated across agencies and may result in deportation or travel restrictions.
Abhinav Tripathi, founder of Protego Law Group, added that U.S. Citizenship and Immigration Services (USCIS) has begun issuing notices based on tax-reported side earnings.
“At a minimum, USCIS might argue that the person violated status, which could lead to removal proceedings or issues at the port of entry during travel,” he said.
What Types of Income Are Risky?
According to attorney Karin Wolman, Schedule C income — covering freelance or gig work such as consulting or Uber driving — remains the most common red flag.
In contrast, passive income sources like Schedule B (interest) and Schedule D (capital gains) are generally exempt from scrutiny.
But grey areas remain with Schedule E (rental income) and Schedule K (partnerships), which may combine passive and active income streams.
Wolman cautioned that immigration officers may misinterpret such filings, creating risks even where income is technically compliant.
Lawyers Advise Caution
Legal experts are now strongly advising immigrants to avoid all unauthorized employment, regardless of how small the earnings may seem.
They warn that even modest side income could have serious long-term consequences, from denial of visa extensions to inadmissibility or deportation.