113 HR 1292 IH: New IDEA Act
U.S. House of Representatives
2013-03-20
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as—
(1)the
New IDEA Act
;
or
(2)the
New Illegal Deduction Elimination
Act
.
2.Clarification
that wages paid to unauthorized aliens may not be deducted from gross
income
(a)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)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)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)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)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 auditThe 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 collectionSubsection (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:
(12)Deduction
claimed for wages paid to unauthorized aliensIn 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 purposesSection 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)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)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 aliensUpon
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)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)
(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, 2013.
3.Modification of
E-Verify Program
(a)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)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 presumptionParagraph (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)Subparagraph (A) of
section 402(c)(2) of such Act is amended to read as follows:
(A)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 ProgramSubsection (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 applicantsSection 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-VerifyA
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.
.