Tax filings among immigrants fell sharply last year at a New Bedford nonprofit as filers feared their information could be used to target them for deportation.

• Brian Pastori, deputy director of the Community Economic Development Center, expects demand to plummet further this tax season.

Why it matters: That "chilling effect," as many call it, may hurt the state's coffers and put immigrants and citizens alike at risk, advocates say.

The latest: The Washington Post reported Wednesday that the Internal Revenue Service shared taxpayer data with the Department of Homeland Security, despite two federal rulings blocking a controversial information-sharing agreement between the agencies.

State of play: Under past administrations, federal authorities have assured immigrants they could file their taxes without risking deportation.

• "Now that trust is broken," Pastori told Axios on Tuesday.
• The 11-person nonprofit where he works, alongside national advocacy groups, is at the center of a federal lawsuit in Boston fighting DHS' efforts to use IRS data for immigration enforcement.
• Pastori said he and his colleagues have had to discuss the risks with clients who applied for individual tax ID numbers to pay taxes, with dozens opting out.

The other side: Asked about the Post report, a DHS spokesperson said in a statement that "under President Trump's leadership, the government is finally doing what it should have all along — sharing information across the federal government to solve problems."

Zoom in: The CEDC saw its waitlist dwindle as soon as Trump reentered office.

• The office had 35 applications for new ITINs last year — one-fourth of the volume seen a year earlier.
• Tax filings among ITIN holders at CEDC dropped 25% last year to just over 100 filers.
• Nonprofits serving immigrants in Cambridge, Boston and other parts of the state reported similar drops.

Threat level: In the Boston case, Judge Indira Talwani ruled that the DHS and IRS information-sharing agreement not only harms nonprofits like CEDC, but also citizens and non-citizens alike who could be misidentified as deportable.

• Talwani noted that nearly half of Korean Americans, for example, share one of three surnames.
• That risk could not only affect misidentified people, but their loved ones and neighbors, especially with DHS lawyers arguing that undocumented immigrants don't have Fourth Amendment protections, Talwani wrote.

Keep reading: Economic consequences

If your tax return hits a snag this year, getting help and refunds from the Internal Revenue Service could take longer.

Why it matters: A Treasury watchdog report warns the IRS entered the 2026 filing season short-staffed and overwhelmed, increasing the risk of delays and service problems for millions of taxpayers.

The big picture: The IRS has lost about 19,000 employees over the past year amid federal workforce reductions, per a report by the Treasury Inspector General for Tax Administration.

• Staffing in key filing-season programs has fallen back to roughly 2021 levels, while the volume of unprocessed returns and taxpayer correspondence has surged.

By the numbers: As of December, the IRS was carrying roughly 2 million unresolved cases, more than double pre-pandemic levels.

• The IRS approved 2,200 new hires to help process original and amended tax returns this filing season, but just 50 workers had been onboarded as of late December.

Zoom in: The IRS staffing crunch is most likely to show up in how returns are processed — and how long it takes to get help if something goes wrong.

• Returns that require manual handling — including paper filings, amended returns, or those flagged for identity verification or mismatched income — are most at risk.

Meanwhile, the IRS is temporarily assigning employees from other departments, including HR and IT — some with no direct tax experience — to answer phones and assist with processing.

Go deeper: How to avoid delays

💉 The FDA is refusing to review Moderna's flu vaccine for approval, which could derail the Cambridge company's efforts to break even by 2028. (BBJ)

A Newton woman charged with illegally performing plastic surgery didn't show up to her hearing Monday at Suffolk Superior Court — because Immigration and Customs Enforcement had detained her. (UniversalHub)

Massachusetts Education Secretary Patrick Tutwiler is stepping down Friday. He'll be replaced by Salem Public Schools Superintendent Stephen Zrike. (Boston Globe)

• Zrike will inherit a range of challenges, including tightening school budgets, declining literacy rates and rising absenteeism.

A fast-growing company that's part-restaurant, part-food pickup-and-delivery app opens three Massachusetts locations today.

Why it matters: Massachusetts is the latest market for New York-based Wonder, which is ramping up operations across the Northeast.

Driving the news: The company is opening three restaurants west of Boston:

• 219 N. Main St. in Natick
• 493 Trapelo Road in Belmont
• and 571 Worcester Road in Framingham.

Another six are on the way, with each location hiring an estimated 35 employees, per the company.

How it works: The restaurants offer a range of items akin to a food hall, with options ranging from New York-based Di Fara Pizza to menus by star chefs Bobby Flay and José Andrés.

• Their online platform offers those same options for pickup or delivery, letting users mix and match meals from different menus.

What's next: Wonder plans to open locations as early as next month in Acton, Medford, Newton, Watertown, Canton and Burlington.

Tell a hungry friend

Find aerial sculptures by Boston-based artist Cicely Carew on display as part of the New England Botanic Garden at Tower Hill's annual orchid exhibition in Boylston.

• The exhibition launched Feb. 7 and runs through March 22.