[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 849 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 849
To amend the Internal Revenue Code of 1986 to require the Secretary of
the Treasury to notify the Secretary of Homeland Security of employer
returns showing the employment of individuals not authorized to be
employed in the United States and to notify the employers that they
must terminate the employment of those employees, to provide an
opportunity for those employees to contest the information, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2007
Mr. Gallegly introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on
Education and Labor and the Judiciary, 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 require the Secretary of
the Treasury to notify the Secretary of Homeland Security of employer
returns showing the employment of individuals not authorized to be
employed in the United States and to notify the employers that they
must terminate the employment of those employees, to provide an
opportunity for those employees to contest the information, 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 ``Stop the Misuse of ITINs Act of
2007''.
SEC. 2. NOTIFICATION OF EMPLOYMENT STATUS OF INDIVIDUALS NOT AUTHORIZED
TO WORK IN THE UNITED STATES.
(a) In General.--Subsection (i) of section 6103 of the Internal
Revenue Code of 1986 (relating to confidentiality and disclosure of
returns and return information) is amended by adding at the end the
following new paragraph:
``(9) Disclosure to secretary of homeland security of
employment information of employees not authorized to be
employed in united states.--
``(A) In general.--If--
``(i) the Secretary receives a return from
any person or entity (hereafter in this
paragraph referred to as the `employer')
showing wages (as defined in section 3121(a))
paid to any employee, and
``(ii) the TIN of such employee, as shown
on such return, indicates that such employee is
not authorized to be employed in the United
States,
the Secretary shall provide electronically to the
Secretary of Homeland Security the following
information as shown on such return: the name, address,
and TIN of such employee and the name, address, and
employer identification number of the employer.
``(B) Notice to employer and employee.--Whenever
the Secretary sends a notice under subparagraph (A)
with respect to any employer and employee, the
Secretary also shall notify the employer and the
employee in writing that such employee is not
authorized to be employed in the United States and that
the employee's employment with the employer should be
terminated not later than the 30th day after the date
of the notice. Such notice shall also describe--
``(i) the employer's obligations under this
paragraph,
``(ii) the employee's right under this
paragraph to contest the determination that the
employee is not authorized to be employed in
the United States, and
``(iii) the procedure under this paragraph
for contesting such determination.
``(C) Employee's right to contest.--
``(i) Notice to employee.--If any employer
receives such a notice from the Secretary with
respect to an employee, the employer shall,
within 3 business days after the date the
employer received such notice, provide a copy
of such notice to the employee.
``(ii) Right to contest.--An employee may
contest the accuracy of such notice during the
30-day period beginning on the date that the
employer provided the notice under clause (i)
to the employee.
``(iii) Contest procedure.--If, during such
30-day period, the employee provides the
employer with information substantiating such
employee's claimed authorization to be employed
in the United States, the employer shall, in
such form and manner as the Secretary shall
prescribe, provide to the Secretary--
``(I) the employee's name, address,
and taxpayer identification number,
``(II) the employer's name,
address, telephone number, and employer
identification number, and
``(III) the information provided by
the employee to the employer
substantiating such employee's
authorization to be employed in the
United States.
``(D) Verification from department of homeland
security.--
``(i) Transmittal of inquiry.--Within 3
business days after receiving the information
described in subparagraph (C)(iii), the
Secretary shall provide such information
electronically to the Secretary of Homeland
Security.
``(ii) Response.--Within 7 business days
after receiving such information, the Secretary
of Homeland Security shall electronically
notify the Secretary, and shall notify the
employer and employee in writing, as to whether
the employee is authorized to be employed in
the United States.
``(E) Suspension of obligation to terminate
employment until response received.--
``(i) In general.--Except as provided in
clause (ii), if the employee meets the
requirement of subparagraph (C)(iii), the
employer's obligation to terminate the
employment of such employee shall be suspended
until the employer receives the notice
described in subparagraph (D)(ii).
``(ii) Timely response not received.--If
the employer does not receive such notice
before the 30th day after the close such 30-day
period, the employer shall so notify the
Secretary.
``(F) Rebuttable presumption of violation of the
immigration and nationality act.--
``(i) In general.--A rebuttable presumption
is created that the employer has violated
section 274A(a)(1)(A) of the Immigration and
Nationality Act if--
``(I) the employer employs an
individual with respect to whom a
notice is received under subparagraph
(B) after the 30 days described in such
subparagraph,
``(II) the employer fails to notify
the Secretary as required by
subparagraph (E)(ii) and employs such
individual, or
``(III) the employer refers the
individual for employment after
receiving a notice under subparagraph
(B) with respect to such individual.
``(ii) Exceptions.--
``(I) Suspension period.--Clause
(i)(I) shall not apply during the
suspension period described in
subparagraph (E)(i)
``(II) Notice from secretary of
homeland security.--Clause (i) shall
cease to apply with respect to an
individual after the date that the
employer is notified by the Secretary
of Homeland Security that such
individual is authorized to be employed
in the United States.
``(G) Refunds denied.--No refund of any tax imposed
by this title shall be made to any individual for any
taxable year during any portion of which such
individual is employed in the United States without
being authorized to be so employed.
``(H) Special rules.--
``(i) Protection from liability.--No
employer shall be civilly or criminally liable
under any law for any action taken in good
faith reliance on information provided by the
Secretary or the Secretary of Homeland Security
with respect to any individual's eligibility to
be employed in the United States.
``(ii) Timely mailing treated as timely
notice.--Rules similar to the rules of section
7502 shall apply for purposes of this section.
``(iii) Last known address of employee.--
Any notice required to be provided to an
employee under this section shall be sufficient
if mailed to the employee at the last known
address of the employee.''.
(b) Conforming Amendment.--Paragraph (4) of section 6103(p) of such
Code is amended by striking ``(5) or (7)'' each place it appears and
inserting ``(5), (7), or (9)''.
(c) Effective Date.--The amendments made by this section shall
apply to returns received more than 180 days after the date of the
enactment of this Act.
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