If the US wants more income to deal with the debt/deficit (to fund more tax cuts), then discouraging filing is not a good idea. Also, these folks would pay into Social Security but cannot collect, so they are actually subsidizing Americans.<p>See also:<p>> <i>Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity.</i><p>* <a href="https://www.irs.gov/publications/p525#en_US_2024_publink1000229557" rel="nofollow">https://www.irs.gov/publications/p525#en_US_2024_publink1000...</a><p>* <a href="https://en.wikipedia.org/wiki/Taxation_of_illegal_income_in_the_United_States" rel="nofollow">https://en.wikipedia.org/wiki/Taxation_of_illegal_income_in_...</a>