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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2974 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2974
To amend the Internal Revenue Code of 1986 to require taxpayers
claiming the child and earned income tax credits, and their qualifying
children, to have a valid social security number for employment
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 3, 2025
Mrs. Hyde-Smith introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to require taxpayers
claiming the child and earned income tax credits, and their qualifying
children, to have a valid social security number for employment
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 ``Status Eligibility Confirmation and
Updated Requirements for Earned Benefits Act of 2025'' or the ``SECURE
Benefits Act of 2025''.
SEC. 2. TEMPORARY WORK AUTHORIZATION.
(a) In General.--Section 205(c)(2) of the Social Security Act (42
U.S.C. 405(c)(2)) is amended by adding at the end the following new
subparagraph:
``(I) Temporary Work-Authorized Social Security Number.--
``(i) In general.--In the case of an individual who has
been issued a temporary work authorization by the Secretary of
Homeland Security, the Commissioner shall--
``(I) assign a temporary work-authorized social
security number to such individual; and
``(II) in a manner consistent with subparagraph
(G), issue a social security card to such individual
which, on the face of such card, indicates that the
temporary work-authorized social security number is
valid solely with respect to such employment, and for
such period, as granted by the Department of Homeland
Security pursuant to their temporary work
authorization.
``(ii) Information sharing.--
``(I) Temporary work-authorizations.--The Secretary
of Homeland Security shall share with the Commissioner
any information with respect to the status of any
temporary work authorization which has been issued by
the Secretary of Homeland Security for the purpose of
administering this subparagraph, including--
``(aa) the expiration date for such
temporary work authorization;
``(bb) any reauthorization of such
temporary work authorization;
``(cc) whether such temporary work
authorization is restricted to specific
employers or employment circumstances; and
``(dd) any changes or adjustments with
respect to such temporary work authorization
which have been reported to the Secretary of
Homeland Security.
``(II) Coordination with internal revenue
service.--The Commissioner shall share with the
Secretary (as defined in section 7701(a)(11)(B) of the
Internal Revenue Code of 1986) any information provided
to the Commissioner pursuant to subclause (I),
including any temporary work-authorized social security
number which has been issued by the Commissioner
pursuant to a temporary work authorization.
``(iii) Definitions.--In this subparagraph:
``(I) Commissioner.--The term `Commissioner' means
the Commissioner of Social Security.
``(II) Temporary work authorization.--The term
`temporary work authorization' means work authorization
granted to an alien within a class of aliens described
in subsection (b) or (c) of section 274a.12 of title 8,
Code of Federal Regulations, as in effect on the date
of the enactment of this subparagraph, the validity of
which is dependent upon the maintenance of nonimmigrant
or other temporary legal status.''.
(b) Conforming Amendment.--Section 205(c)(2)(B)(i)(I) of the Social
Security Act (42 U.S.C. 405(c)(2)(B)(i)(I)) is amended by inserting
``subject to subparagraph (I),'' before ``to aliens at the time''.
(c) Effective Date.--The amendments made by this section shall take
effect on January 1, 2027.
SEC. 3. CHILD TAX CREDIT IDENTIFICATION REQUIREMENTS.
(a) In General.--Paragraph (7) of section 24(h) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``or, in the case of a joint return, the
social security number of at least 1 spouse'' in subparagraph
(A)(i) and inserting ``the social security number of both
spouses, in the case of a joint return'', and
(2) by adding at the end the following new subparagraph:
``(C) Additional requirements for noncitizens with
temporary work authorization.--
``(i) In general.--In the case of an
individual with a temporary work-authorized
social security number pursuant to section
205(c)(2)(I) of the Social Security Act, such
temporary work-authorized social security
number shall be treated as a social security
number for purposes of subparagraph (B) only if
the Secretary confirms in coordination with the
Secretary of Homeland Security that the
individual has a valid temporary work
authorization (as defined in section
205(c)(2)(I)(iii)(II) of such Act) as of the
date of filing the return for the taxable year.
``(ii) Documentation.--The Secretary, in
consultation with the Secretary of Homeland
Security, shall prescribe the form and manner
of documentation required to be provided for
purposes of clause (i).''.
(b) Penalty.--
(1) In general.--Part II of subchapter A of chapter 68 of
the Internal Revenue Code of 1986 is amended by inserting after
section 6663 the following new section:
``SEC. 6663A. IMPOSITION OF PENALTY FOR INVALID WORK AUTHORIZATION FOR
PURPOSES OF CHILD TAX CREDIT.
``(a) Imposition of Penalty.--If any claim of credit under section
24 on a return is due to fraud relating to an expired or invalid
temporary work authorization (as defined in section
205(c)(2)(I)(iii)(II) of the Social Security Act), there shall be added
to the tax an amount equal to the greater of--
``(1) the amount of the credit so claimed, or
``(2) $5,000.
``(b) Reasonable Cause Exception.--No penalty shall be imposed
under subsection (a) if it is shown that there was a reasonable cause
for the taxpayer's claim of credit and the taxpayer acted in good faith
with respect to such credit.''.
(2) Clerical amendment.--The table of sections for part II
of subchapter A of chapter 68 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section
6663 the following new item:
``Sec. 6663A. Imposition of penalty for invalid work authorization for
purposes of child tax credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2026.
SEC. 4. EARNED INCOME CREDIT IDENTIFICATION REQUIREMENTS.
(a) In General.--Subsection (m) of section 32 of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``clause (II) (or that portion of clause
(III) that relates to clause (II)) of section 205(c)(2)(B)(i)
of the Social Security Act'' and inserting ``subclause (II) (or
that portion of subclause (III) that relates to subclause (II))
of section 205(c)(2)(B)(i) of the Social Security Act, or any
other social security number which does not indicate that the
individual to whom the number is issued is authorized to work
in the United States'',
(2) by striking ``Numbers.--Solely'' and inserting
``Numbers.--
``(1) In general.--Solely'', and
(3) by adding at the end the following new paragraph:
``(2) Additional requirements for noncitizens with
temporary work authorization.--
``(A) In general.--In the case of an individual
with a temporary work-authorized social security number
pursuant to section 205(c)(2)(I) of the Social Security
Act, such individual shall not be treated as an
eligible individual or a qualifying child for purposes
of this section unless the Secretary confirms in
coordination with the Secretary of Homeland Security
that the individual has a valid temporary work
authorization (as defined in section
205(c)(2)(I)(iii)(II) of such Act) as of the date of
filing the return for the taxable year.
``(B) Documentation.--The Secretary, in
consultation with the Secretary of Homeland Security,
shall prescribe the form and manner of documentation
required to be provided for purposes of subparagraph
(A).''.
(b) Penalty.--Section 6663A of the Internal Revenue Code of 1986,
as added by section 3, is amended--
(1) by striking ``section 24'' in subsection (a) and
inserting ``section 24 or 32'',
(2) by striking ``child tax'' in the heading and inserting
``child or earned income'', and
(3) by adding at the end the following new subsection:
``(c) Penalties To Be Aggregated.--In the case of penalties imposed
under subsection (a) with respect to more than 1 credit described in
such subsection, the amount added to the tax pursuant to this section
shall be sum of all such penalties.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2026.
SEC. 5. SAVERS CREDIT.
(a) In General.--Section 25B of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(g) Identification Requirement.--
``(1) In general.--No credit shall be allowed under
subsection (a) with respect to an eligible individual unless
the individual includes such individual's social security
number on the return of tax for the taxable year.
``(2) Social security number defined.--For purposes of this
subsection, the term `social security number' has the meaning
given such term in section 24(h)(7).''.
(b) Penalty.--Section 6663A of the Internal Revenue Code of 1986,
as added and amended by this Act, is further amended--
(1) by striking ``section 24 or 32'' in subsection (a) and
inserting ``section 24, 25B, or 32'', and
(2) by striking ``child or earned income credit'' in the
heading and inserting ``certain credits''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2026.
SEC. 6. SAVER'S MATCH.
(a) In General.--Subsection (c) of section 6433 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
``(4) Identification requirement.--
``(A) In general.--An individual shall not be
treated as an eligible individual unless the individual
includes such individual's social security number on
the return of tax for the taxable year.
``(B) Social security number defined.--For purposes
of this subsection, the term `social security number'
has the meaning given such term in section 24(h)(7).''.
(b) Penalty.--Section 6663A of the Internal Revenue Code of 1986,
as added and amended by this Act, is further amended by inserting ``,
or of a matching contribution under section 6433,'' after ``32''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2026.
SEC. 7. PENALTY FOR INVALID WORK AUTHORIZATION FOR PURPOSES OF AMERICAN
OPPORTUNITY AND LIFETIME LEARNING CREDITS.
(a) In General.--Section 6663A of the Internal Revenue Code of
1986, as added and amended by this Act, is further amended by inserting
``, 25A'' after ``24''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2026.
SEC. 8. MATH ERROR AUTHORITY.
(a) Earned Income Credit.--Subparagraph (F) of section 6213(g)(2)
of the Internal Revenue Code of 1986 is amended by striking ``taxpayer
identification number'' and inserting ``social security number''.
(b) Child Tax Credit.--
(1) In general.--Subparagraph (I) of section 6213(g)(2) of
the Internal Revenue Code of 1986 is amended by striking
``TIN'' and inserting ``social security number''.
(2) Age and credit determinations.--Subparagraph (L) of
section 6213(g)(2) of such Code is amended--
(A) by striking ``a TIN'' and inserting ``a TIN or
social security number, as applicable,'', and
(B) by striking ``such TIN'' both places it appears
and inserting ``such TIN or social security number''.
(c) Savers Credit.--Section 6213(g) of such Code is amended by
striking ``and'' at the end of subparagraph (Z), by striking the period
at the end of subparagraph (AA) and inserting ``, and'', and by
inserting after subparagraph (AA) the following new subparagraph:
``(BB) an omission of a correct social security
number required under section 25B(g) (relating to
savers credit).''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2026.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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