Sponsors
The bill tightens SSN-based identity verification and cross-agency checks to reduce improper tax-credit payments and improve payroll/tax reporting, but it increases penalties, administrative costs, privacy risks, and the chance that immigrants and other SSN-lacking filers will lose access to benefits or face delays.
Low- and moderate-income taxpayers and taxpayers generally: stronger identity-verification and cross-agency checks reduce improper or fraudulent claims for the EITC, Child Tax Credit, Saver's Match/savers credit, and education credits, protecting program integrity and taxpayer funds.
People with temporary DHS work authorization, employers, and the IRS: creating SSNs tied to authorized employment periods and explicit DHS–SSA–Treasury/IRS data sharing reduces mismatches and speeds verification for payroll withholding, benefit eligibility checks, and tax processing.
Taxpayers and legitimate claimants: explicit statutory enforcement tools and reasonable-cause/good-faith exceptions protect legitimate filers by giving the IRS clearer authority to deter and target fraud while preserving remedies for those who make honest mistakes.
Immigrants, ITIN holders, mixed-status families, and some low-income filers: tying eligibility for EITC, Child Tax Credit, savers credit/Saver's Match, and education credits to SSNs risks excluding people who lack SSNs or rely on ITINs, reducing access to benefits.
Low-income families and other taxpayers: new or expanded penalties (including amounts up to the credit or specified fines and a new §6663A) increase financial exposure for filers who claim credits with expired/invalid authorizations or make errors.
Immigrants and other filers: expanded DHS–SSA–Treasury/IRS data sharing and cross-agency checks create privacy and data-security risks as more sensitive work-authorization and identity information is exchanged.
Based on analysis of 8 sections of legislative text.
Creates temporary, employment-limited SSNs for DHS-authorized workers and requires IRS-DHS verification plus new documentation and penalties for tax credits claimed with invalid temporary work authorization.
Introduced October 3, 2025 by Cindy Hyde-Smith · Last progress October 3, 2025
Creates a system for issuing temporary, work-authorized Social Security numbers (SSNs) to people with Department of Homeland Security (DHS) temporary work authorization, requires DHS and the Social Security Administration (SSA) to share status information with each other and with the IRS, and changes tax rules to require SSNs and additional verification for several tax credits. It adds new documentation requirements, interagency confirmation steps, and a new penalty for claiming credits based on expired or invalid temporary work authorization. Changes affect the earned income tax credit (EITC), child-related credits, the savers credit and saver’s match, and education tax credits (American Opportunity and Lifetime Learning). Most tax-code changes and penalties apply for tax years beginning after December 31, 2026; the SSA temporary work-authorized SSN issuance takes effect January 1, 2027. The bill increases IRS-DHS-SSA coordination, creates criminal/administrative enforcement tools for improper claims, and could increase verification burdens for low-income taxpayers and temporary workers while reducing fraud risk.