Sponsors (16)
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Denies federal tax deductions for wages paid to individuals classified as "unauthorized aliens," creates an E-Verify safe harbor for employers who confirm identity and work eligibility, and requires Treasury, Social Security, and Homeland Security to share information to identify unauthorized workers. It also makes the E-Verify program permanent and expands who may elect to participate, gives participating employers a rebuttable presumption against certain immigration violations, and allows employers to make job offers conditional on final E-Verify confirmation. The bill changes the tax code to disallow wage deductions for unauthorized workers for tax years beginning after December 31, 2024, modifies audit and statute-of-limitations rules for such returns, and permits cross-agency disclosure of employer and worker identity information tied to disallowed wage deductions.
The bill incentivizes employers to use E‑Verify and tightens program integrity and tax-audit rules—reducing employer liability and unauthorized employment—at the cost of increased audit risk and administrative burdens for small employers and greater privacy, access, and wrongful-denial risks for immigrant and low-income workers.
Employers (especially small-business owners) who use E‑Verify gain reduced legal and tax risk: verified hires create a rebuttable presumption of compliance and support wage-deduction claims, lowering employer liability and encouraging use of verification.
Tax- and benefits-administration agencies sharing SSA/DHS/Treasury data and wider E‑Verify use can improve program integrity and reduce unauthorized employment and payroll fraud, protecting taxpayers and program solvency.
Tax audits will require the IRS to prove wages were paid to unauthorized workers (rather than shifting speculative adjustments onto employers), which protects taxpayers from improper tax adjustments.
Immigrants and job seekers face increased risk of delayed, rescinded, or wrongful denials of employment because expanded reliance on E‑Verify and removal of sunset increases exposure to system errors and nonconfirmations.
Small-business owners risk losing wage-deduction claims and face a longer (six-year) audit exposure window, increasing labor costs, financial uncertainty, and potential liabilities from past hiring.
Expanded information-sharing and disclosure of taxpayer identities to DHS/SSA and linking tax enforcement with immigration enforcement reduce privacy protections and may discourage immigrants (especially low-income or unauthorized workers) from reporting wages or accessing services.
Introduced June 4, 2025 by Brandon Gill · Last progress June 4, 2025