HR 3554
110th CONGRESS
1st Session
H. R. 3554
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
September 17, 2007
Mr. KING of Iowa (for himself, Mr. BRADY of Texas, Mr. GOODE, Ms. FOXX,
Mrs. MYRICK, Mr. FRANKS of Arizona, Mr. SALAZAR, Mr. CARTER, Mr. BILBRAY,
Mr. WALBERG, Mr. PRICE of Georgia, Mr. AKIN, Mr. DOOLITTLE, Mr. SHADEGG,
Mr. FEENEY, Mr. BURTON of Indiana, Mr. GINGREY, Mr. KINGSTON, and Mr. NEUGEBAUER)
introduced the following bill; which was referred to the Committee on Ways
and Means
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 IDEA (Illegal Deduction Elimination 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
basic pilot program described in section 403 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.'.
(b) 6-Year Limitation on Assessment and Collection- Subsection (c) of section
6501 of such Code (relating to exceptions) is amended by adding at the end
the following new paragraph:
`(11) 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- The Commissioner of Social Security shall
make available to the Commissioner of Internal Revenue any information related
to the investigation and enforcement of section 162(c)(4) of the Internal
Revenue Code of 1986, including any no-match letter and any information
in the earnings suspense file.
(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, 2007.
END
