Sponsors (16)
The bill strengthens employer protections and expands E-Verify use and information-sharing to better prevent unauthorized employment, but it does so at the cost of greater privacy and error risks for immigrant workers, longer audit exposure and financial uncertainty for employers, and potential chilling effects on reporting labor abuses.
Small-business employers who use E-Verify and receive confirmations will face reduced legal risk and greater regulatory stability because the bill makes key E-Verify protections permanent and creates presumptions that shield confirmed hires from certain employer-liability claims.
Employers who follow E‑Verify procedures and receive confirmation can continue claiming wage deductions for verified hires, and Treasury is limited in opening audits solely for claiming the deduction, lowering compliance risk and tax enforcement exposure for compliant businesses.
Expanded information-sharing among SSA, DHS, and Treasury can help identify unauthorized workers and speed administrative enforcement or payroll/benefit corrections, potentially improving immigration and payroll law enforcement.
Immigrant workers and employers face heightened privacy and error risks because expanded data sharing (including no‑match letters, IRS information, and earnings suspense file disclosures) and new disclosure authorities increase chances of identity exposure and erroneous enforcement actions.
Employers who unknowingly employ unauthorized workers risk losing federal wage deductions, which could raise labor costs for businesses and lead to higher prices, reduced hiring, or business strain—especially for small employers.
The bill extends the assessment period for disallowed deductions to six years, increasing long-term audit exposure and financial uncertainty for employers.
Based on analysis of 3 sections of legislative text.
Disallows federal deductions for wages to unauthorized aliens, expands E‑Verify rules and data sharing between SSA, DHS, and Treasury to identify and verify workers.
Introduced June 4, 2025 by Brandon Gill · Last progress June 4, 2025
Disallows federal tax deductions for wages paid to or on behalf of unauthorized aliens, creates a limited E‑Verify safe harbor, shifts certain record and disclosure rules to let agencies share employer and worker identity data, and extends the IRS assessment window when taxpayers claim such disallowed deductions. It also expands and changes how the voluntary E‑Verify program can be used and what legal protections E‑Verify confirmations create. The change to tax law and the expanded E‑Verify rules take effect on enactment for administration provisions, while the tax disallowance and the six‑year assessment rule apply to taxable years beginning after December 31, 2024. Employers, tax preparers, federal agencies, and immigrants are the main groups affected through new compliance, verification, and data‑sharing requirements.