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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3715 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3715
To amend the Internal Revenue Code of 1986 to clarify that wages paid
to unauthorized aliens may not be deducted from gross income, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 4, 2025
Mr. Gill of Texas (for himself, Mr. Nehls, Mr. McClintock, Mr. Gosar,
Ms. Boebert, Mr. Weber of Texas, Mr. Norman, Mr. Roy, Mr. Crane, Mr.
Moore of Alabama, Mr. Harris of North Carolina, Mr. Perry, Ms. Mace,
and Mrs. Biggs of South Carolina) introduced the following bill; which
was referred to the Committee on Ways and Means, and in addition to the
Committees on the Judiciary, and Education and Workforce, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to clarify that wages paid
to unauthorized aliens may not be deducted from gross income, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``New Illegal Deduction Elimination
Act'' or the ``New IDEA Act''.
SEC. 2. CLARIFICATION THAT WAGES PAID TO UNAUTHORIZED ALIENS MAY NOT BE
DEDUCTED FROM GROSS INCOME.
(a) In General.--Subsection (c) of section 162 of the Internal
Revenue Code of 1986 (relating to illegal bribes, kickbacks, and other
payments) is amended by adding at the end the following new paragraph:
``(4) Wages paid to or on behalf of unauthorized aliens.--
``(A) In general.--No deduction shall be allowed
under subsection (a) for any wage paid to or on behalf
of an unauthorized alien, as defined under section
274A(h)(3) of the Immigration and Nationality Act (8
U.S.C. 1324a(h)(3)).
``(B) Wages.--For the purposes of this paragraph,
the term `wages' means all remuneration for employment,
including the cash value of all remuneration (including
benefits) paid in any medium other than cash.
``(C) Safe harbor.--If a person or other entity is
participating in the E-Verify Program described in
section 403(a) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a
note) and obtains confirmation of identity and
employment eligibility in compliance with the terms and
conditions of the program with respect to the hiring
(or recruitment or referral) of an employee,
subparagraph (A) shall not apply with respect to wages
paid to such employee.
``(D) Burden of proof.--In the case of any
examination of a return in connection with a deduction
under this section by reason of this paragraph, the
Secretary shall bear the burden of proving that wages
were paid to or on behalf of an unauthorized alien.
``(E) Limitation on taxpayer audit.--The Secretary
may not commence an audit or other investigation of a
taxpayer solely on the basis of a deduction taken under
this section by reason of this paragraph.''.
(b) Six-Year Limitation on Assessment and Collection.--Subsection
(c) of section 6501 of the Internal Revenue Code of 1986 (relating to
exceptions) is amended by adding at the end the following new
paragraph:
``(13) Deduction claimed for wages paid to unauthorized
aliens.--In the case of a return of tax on which a deduction is
shown in violation of section 162(c)(4), any tax under chapter
1 may be assessed, or a proceeding in court for the collection
of such tax may be begun without assessment, at any time within
6 years after the return was filed.''.
(c) Use of Documentation for Enforcement Purposes.--Section 274A of
the Immigration and Nationality Act (8 U.S.C. 1324a) is amended--
(1) in subparagraph (b)(5), by inserting ``, section
162(c)(4) of the Internal Revenue Code of 1986,'' after
``enforcement of this Act'';
(2) in subparagraph (d)(2)(F), by inserting ``, section
162(c)(4) of the Internal Revenue Code of 1986,'' after
``enforcement of this Act''; and
(3) in subparagraph (d)(2)(G), by inserting ``section
162(c)(4) of the Internal Revenue Code of 1986 or'' after ``or
enforcement of''.
(d) Availability of Information.--
(1) In general.--The Commissioner of Social Security, the
Secretary of the Department of Homeland Security, and the
Secretary of the Treasury, shall jointly establish a program to
share information among such agencies that may or could lead to
the identification of unauthorized aliens (as defined under
section 274A(h)(3) of the Immigration and Nationality Act),
including any no-match letter, any information in the earnings
suspense file, and any information in the investigation and
enforcement of section 162(c)(4) of the Internal Revenue Code
of 1986.
(2) Disclosure by secretary of the treasury.--
(A) In general.--Subsection (i) of section 6103 of
the Internal Revenue Code of 1986 is amended by adding
at the end the following new paragraph:
``(9) Payment of wages to unauthorized aliens.--Upon
request from the Commissioner of the Social Security
Administration or the Secretary of the Department of Homeland
Security, the Secretary shall disclose to officers and
employees of such Administration or Department--
``(A) taxpayer identity information of employers
who paid wages with respect to which a deduction was
not allowed by reason of section 162(c)(4), and
``(B) taxpayer identity information of individuals
to whom such wages were paid,
for purposes of carrying out any enforcement activities of such
Administration or Department with respect to such employers or
individuals.''.
(B) Recordkeeping.--Paragraph (4) of section
6103(p) of such Code is amended--
(i) by striking ``(5), or (7)'' in the
matter preceding subparagraph (A) and inserting
``(5), (7), or (9)'', and
(ii) by striking ``(5) or (7)'' in
subparagraph (F)(ii) and inserting ``(5), (7),
or (9)''.
(e) Effective Date.--
(1) Except as provided in paragraph (2), this Act and the
amendments made by this Act shall take effect on the date of
the enactment of this Act.
(2) The amendments made by subsections (a) and (b) shall
apply to taxable years beginning after December 31, 2024.
SEC. 3. MODIFICATION OF E-VERIFY PROGRAM.
(a) Making Permanent.--Subsection (b) of section 401 of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C.
1324a note) is amended by striking the last sentence.
(b) Application to Current Employees.--
(1) Voluntary election.--The first sentence of section
402(a) of such Act is amended to read as follows: ``Any person
or other entity that conducts any hiring (or recruitment or
referral) in a State or employs any individuals in a State may
elect to participate in the E-Verify Program.''.
(2) Benefit of rebuttable presumption.--Paragraph (1) of
section 402(b) of such Act is amended by adding at the end the
following: ``If a person or other entity is participating in
the E-Verify Program and obtains confirmation of identity and
employment eligibility in compliance with the terms and
conditions of the program with respect to individuals employed
by the person or entity, the person or entity has established a
rebuttable presumption that the person or entity has not
violated section 274A(a)(2) with respect to such
individuals.''.
(3) Scope of election.--Subparagraph (A) of section
402(c)(2) of such Act is amended to read as follows:
``(A) In general.--Any electing person or other
entity may provide that the election under subsection
(a) shall apply (during the period in which the
election is in effect)--
``(i) to all its hiring (and all
recruitment or referral);
``(ii) to all its hiring (and all
recruitment or referral and all individuals
employed by the person or entity);
``(iii) to all its hiring (and all
recruitment or referral) in one or more States
or one or more places of hiring (or recruitment
or referral, as the case may be); or
``(iv) to all its hiring (and all
recruitment or referral and all individuals
employed by the person or entity) in one or
more States or one or more place of hiring (or
recruitment or referral or employment, as the
case may be).''.
(4) Procedures for participants in e-verify program.--
Subsection (a) of section 403 of such Act is amended--
(A) in the matter preceding paragraph (1), by
inserting ``or continued employment in the United
States'' after ``United States''; and
(B) in paragraph (3)--
(i) in subparagraph (A), by striking all
that follows ``(as specified by the Secretary
of Homeland Security)'' and inserting ``after
the date of the hiring, or recruitment or
referral, in the case of inquiries made
pursuant to a hiring, recruitment or referral
(and not of previously hired individuals).'';
and
(ii) in subparagraph (B), by striking
``such 3 working days'' and inserting ``the
specified period''.
(c) Application to Job Applicants.--Section 402(c)(2) of such Act
is amended by adding at the end the following:
``(C) Job offer may be made conditional on final
confirmation by e-verify.--A person or other entity
that elects to participate in the E-Verify Program may
offer a prospective employee an employment position
conditioned on final verification of the identity and
employment eligibility of the employee using the
employment eligibility confirmation system established
under section 404.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on the Judiciary, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on the Judiciary, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on the Judiciary, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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