New rules for wage deductions and E-Verify program strengthening
This act changes tax rules, preventing businesses from deducting wages paid to unauthorized workers from their income. It also strengthens the E-Verify program, which helps employers check work eligibility, offering them legal protection. The goal is to tighten the employment system and increase transparency regarding work legality.
Key points
Businesses will not be able to deduct wages paid to individuals unauthorized to work in the U.S. from their taxes.
Employers using the E-Verify program and properly verifying employees will be protected from claims of hiring unauthorized workers.
Government agencies like Social Security, Homeland Security, and the Treasury will share information to identify unauthorized workers and enforce new rules.
The period for tax authorities to audit tax returns related to these deductions will be extended to six years.
Introduced
Additional Information
Print number: 119_HR_3715
Sponsor: Rep. Gill, Brandon [R-TX-26]
Process start date: 2025-06-04