Sponsors
Introduced October 3, 2025 by Cindy Hyde-Smith · Last progress October 3, 2025
The bill tightens SSN-based verification and interagency checks to reduce improper tax-credit claims and clarify eligibility, but it increases data-sharing and privacy risks, documentation burdens, potential penalties, and the exclusion of people without SSNs from certain credits.
Immigrants with DHS temporary work authorization (and their employers) get distinct, time-limited Social Security numbers tied to their employment period, enabling lawful payroll reporting and clearer work authorization for payroll/tax purposes.
Taxpayers broadly benefit from stronger program integrity: requiring valid SSNs and DHS/IRS verification reduces improper EITC/Child Tax Credit and other refundable-credit claims, preserving funds for eligible families and improving tax administration accuracy.
Taxpayers who make honest mistakes are protected by a reasonable-cause / good-faith exception, reducing the risk of automatic penalties for inadvertent errors.
Immigrants and other taxpayers face increased privacy and data-security risks because the bill creates additional status-linked SSNs and expands interagency DHS/SSA/IRS/Treasury data sharing that could be breached or repurposed for immigration enforcement.
Immigrants and low-income families will face heavier documentation burdens and processing delays to prove eligibility (for CTC, EITC and other credits), increasing the risk that eligible households are denied, delayed, or must repay benefits.
Many filers (including families who relied on expired or incorrect temporary authorizations) face greater penalty, audit, and repayment risk — including aggregated penalties and a new unspecified penalty provision (section 6663A) — which could produce large financial liabilities.
Based on analysis of 8 sections of legislative text.
Creates temporary work-authorized SSNs, requires DHS–SSA–IRS verification, conditions multiple tax credits and matching contributions on confirmed temporary work authorization, and adds penalties for fraud.
Creates a new temporary, work-authorized Social Security number (SSN) and card for noncitizens whose employment is authorized by DHS, requires DHS to share work-authorization data with the Social Security Administration (SSA) and for SSA to share issued temporary SSNs with the Treasury/IRS, and conditions several federal tax benefits on confirmation that individuals held valid temporary work authorization. It adds SSN requirements to joint returns and multiple credits (child tax credit, earned income tax credit, savers credit, Saver’s Match, American Opportunity and Lifetime Learning credits), sets documentation standards and interagency verification procedures, and establishes new tax penalties for claims based on expired or invalid temporary work authorization.