S. 2974
119th CONGRESS 1st Session
To amend the Internal Revenue Code of 1986 to require taxpayers claiming the child and earned income tax credits, and their qualifying children, to have a valid social security number for employment purposes.
IN THE SENATE OF THE UNITED STATES · October 3, 2025 · Sponsor: Mrs. Hyde-Smith · Committee: Committee on Finance
Table of contents
Sec. 6663A. Imposition of penalty for invalid work authorization for purposes of child tax credit.
- (a) Imposition of penalty
- If any claim of credit under section 24 on a return is due to fraud relating to an expired or invalid temporary work authorization (as defined in section 205(c)(2)(I)(iii)(II) of the Social Security Act), there shall be added to the tax an amount equal to the greater of—
- the amount of the credit so claimed, or
- $5,000.
- If any claim of credit under section 24 on a return is due to fraud relating to an expired or invalid temporary work authorization (as defined in section 205(c)(2)(I)(iii)(II) of the Social Security Act), there shall be added to the tax an amount equal to the greater of—
- (b) Reasonable cause exception
- No penalty shall be imposed under subsection (a) if it is shown that there was a reasonable cause for the taxpayer's claim of credit and the taxpayer acted in good faith with respect to such credit.