,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #abib  ,,in ,,the ,,house ,,of  
,,representatives  ,march #bj1 #bjac    
,mr4 ,king of ,iowa 7for himself1 ,mr4  
,franks of ,arizona1 ,mr4 ,jones1 ,mr4  
,duncan of ,south ,carolina1 ,mr4       
,brooks of ,alabama1 ,mr4 ,burgess1 and 
,mr4 ,barletta7 introduced the following
 bill2 which was referred to the        
,committee on ,ways and ,means1 and in  
addition to the ,committees on the      
,judiciary and ,education and the       
,workforce1 for a period to be          
subsequently determined by the ,speaker1
 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 #aihf to clarify that 
wages paid to unauthorized aliens may   
not be deducted from gross income1 and  
for other purposes4  #a4 ,short title   
,this ,act may be cited as--  7#a7 the  
,new ,,idea ,act2 or  7#b7 the ,new     
,illegal ,deduction ,elimination ,act4  

#b4 ,clarification that wages paid to   
unauthorized aliens may not be deducted 
from gross income  7a7 ,in general      
,subsection 7c7 of section #afb of the  
,internal ,revenue ,code of #aihf       
7relating to illegal bribes1 kickbacks1 
and other payments7 is amended by adding
 at the end the following new paragraph3
  7#d7 ,wages paid to or on behalf of   
unauthorized aliens  7,a7 ,in general   
,no deduction shall be allowed under    
subsection 7a7 for any wage paid to or  
on behalf of an unauthorized alien1 as  
defined under section #bgd;,a7h77#c7 of 
the ,immigration and ,nationality ,act  
7#h ,u4,s4,c4 #acbd;a7h77#c774  7,b7    
,wages ,for the purposes of this        
paragraph1 the term wages means all     
remuneration for employment1 including  
the cash value of all remuneration      
7including benefits7 paid in any medium 
other than cash4  7,c7 ,safe ,harbor ,if
 a person or other entity is            
participating in the ,e-,verify ,program
 described in section #djc7;a7 of the   

,illegal ,immigration ,reform and       
,immigrant ,responsibility ,act of #aiif
 7#h ,u4,s4,c4 #acbd;a note7 and obtains
 confirmation of identity and employment
 eligibility in compliance with the     
terms and conditions of the program with
 respect to the hiring 7or recruitment  
or referral7 of an employee1            
subparagraph 7,a7 shall not apply with  
respect to wages paid to such employee4 
7,d7 ,burden of proof ,in the case of   
any examination of a return in          
connection with a deduction under this  
section by reason of this paragraph1 the
 ,secretary shall bear the burden of    
proving that wages were paid to or on   
behalf of an unauthorized alien4  7,e7  
,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         
paragraph4  4  7b7 ,six-,year limitation
 on assessment and collection           
,subsection 7c7 of section #feja of the 

,internal ,revenue ,code of #aihf       
7relating to exceptions7 is amended by  
adding at the end the following new     
paragraph3  7#ab7 ,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 #afb7;c77#d71 any tax under     
chapter #a may be assessed1 or a        
proceeding in court for the collection  
of such tax may be begun without        
assessment1 at any time within #f years 
after the return was filed4  4  7c7 ,use
 of documentation for enforcement       
purposes ,section #bgd;,a of the        
,immigration and ,nationality ,act 7#h  
,u4,s4,c4 #acbd;a7 is amended--  7#a7 in
 subparagraph 7b77#e71 by inserting 1   
section #afb7;c77#d7 of the ,internal   
,revenue ,code of #aihf1 after          
enforcement of this ,act2  7#b7 in      
subparagraph 7d77#b77;,f71 by inserting 
1 section #afb7;c77#d7 of the ,internal 
,revenue ,code of #aihf1 after          
enforcement of this ,act2 and  7#c7 in  

subparagraph 7d77#b77;,g71 by inserting 
section #afb7;c77#d7 of the ,internal   
,revenue ,code of #aihf or after or     
enforcement of4  7d7 ,availability of   
information  7#a7 ,in general ,the      
,commissioner of ,social ,security1 the 
,secretary of the ,department of        
,homeland ,security1 and the ,secretary 
of the ,treasury1 shall jointly         
establish a program to share information
 among such agencies that may or could  
lead to the identification of           
unauthorized aliens 7as defined under   
section #bgd;,a7h77#c7 of the           
,immigration and ,nationality ,act71    
including any no-match letter1 any      
information in the earnings suspense    
file1 and any information in the        
investigation and enforcement of section
 #afb7;c77#d7 of the ,internal ,revenue 
,code of #aihf4  7#b7 ,disclosure by    
,secretary of the ,treasury  7,a7 ,in   
general ,subsection 7i7 of section #fajc
 of the ,internal ,revenue ,code of     
#aihf is amended by adding at the end   

the following new paragraph3  7#i7      
,payment of wages to unauthorized aliens
 ,upon request from the ,commissioner of
 the ,social ,security ,administration  
or the ,secretary of the ,department of 
,homeland ,security1 the ,secretary     
shall disclose to officers and employees
 of such ,administration or             
,department--  7,a7 taxpayer identity   
information of employers who paid wages 
with respect to which a deduction was   
not allowed by reason of section        
#afb7;c77#d71 and  7,b7 taxpayer        
identity information of individuals to  
whom such wages were paid1  for purposes
 of carrying out any enforcement        
activities of such ,administration or   
,department with respect to such        
employers or individuals4  4  7,b7      
,recordkeeping ,paragraph 7#d7 of       
section #fajc7p7 of such ,code is       
amended--  7i7 by striking 7#e71 or 7#g7
 in the matter preceding subparagraph   
7,a7 and inserting 7#e71 7#g71 or 7#i71 
and  7ii7 by striking 7#e7 or 7#g7 in   

subparagraph 7,f77ii7 and inserting     
7#e71 7#g71 or 7#i74  7e7 ,effective    
date  7#a7 ,except as provided in       
paragraph 7#b71 this ,act and the       
amendments made by this ,act shall take 
effect on the date of the enactment of  
this ,act4  7#b7 ,the amendments made by
 subsections 7a7 and 7b7 shall apply to 
taxable years beginning after ,december 
#ca1 #bjac4  #c4 ,modification of       
,e-,verify ,program  7a7 ,making        
permanent ,subsection 7b7 of section    
#dja of the ,illegal ,immigration       
,reform and ,immigrant ,responsibility  
,act of #aiif 7#h ,u4,s4,c4 #acbd;a     
note7 is amended by striking the last   
sentence4  7b7 ,application to current  
employees  7#a7 ,voluntary election ,the
 first sentence of section #djb7;a7 of  
such ,act is amended to read as follows3
 ,any person or other entity that       
conducts any hiring 7or recruitment or  
referral7 in a ,state or employs any    
individuals in a ,state may elect to    
participate in the ,e-,verify ,program44

  7#b7 ,benefit of rebuttable           
presumption ,paragraph 7#a7 of section  
#djb7;b7 of such ,act is amended by     
adding at the end the following3 ,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 entity1 the person or entity  
has established a rebuttable presumption
 that the person or entity has not      
violated section #bgd;,a7a77#b7 with    
respect to such individuals44  7#c7     
,scope of election ,subparagraph 7,a7 of
 section #djb7;c77#b7 of such ,act is   
amended to read as follows3  7,a7 ,in   
general ,any electing person or other   
entity may provide that the election    
under subsection 7a7 shall apply 7during
 the period in which the election is in 
effect7--  7i7 to all its hiring 7and   
all recruitment or referral72  7ii7 to  
all its hiring 7and all recruitment or  

referral and all individuals employed by
 the person or entity72  7iii7 to all   
its hiring 7and all recruitment or      
referral7 in one or more ,states or one 
or more places of hiring 7or recruitment
 or referral1 as the case may be72 or   
7iv7 to all its hiring 7and all         
recruitment or referral and all         
individuals employed by the person or   
entity7 in one or more ,states or one or
 more place of hiring 7or recruitment or
 referral or employment1 as the case may
 be74  4  7#d7 ,procedures for          
participants in ,e-,verify ,program     
,subsection 7a7 of section #djc of such 
,act is amended--  7,a7 in the matter   
preceding paragraph 7#a71 by inserting  
or continued employment in the ,united  
,states after ,united ,states2 and  7,b7
 in paragraph 7#c7--  7i7 in            
subparagraph 7,a71 by striking all that 
follows 7as specified by the ,secretary 
of ,homeland ,security7 and inserting   
after the date of the hiring1 or        
recruitment or referral1 in the case of 

inquiries made pursuant to a hiring1    
recruitment or referral 7and not of     
previously hired individuals742 and     
7ii7 in subparagraph 7,b71 by striking  
such #c working days and inserting the  
specified period4  7c7 ,application to  
job applicants ,section #djb7;c77#b7 of 
such ,act is amended by adding at the   
end the following3  7,c7 ,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 #djd4  4