Bill > HR3715

This bill, known as the "New IDEA Act," seeks to amend the Internal Revenue Code to prevent businesses from claiming tax deductions for wages paid to unauthorized aliens. Specifically, the bill prohibits employers from deducting wages paid to workers who do not have legal authorization to work in the United States. The legislation provides a "safe harbor" provision for employers who participate in the E-Verify Program and confirm an employee's identity and work eligibility, which would exempt them from the deduction prohibition. The bill also establishes new information-sharing protocols between government agencies like the Social Security Administration, Department of Homeland Security, and the Treasury Department to help identify unauthorized workers. Additionally, the bill modifies the E-Verify Program by making it permanent, allowing voluntary participation for employers, and permitting job offers to be made conditionally pending final verification of an applicant's work eligibility. For tax enforcement purposes, the bill extends the statute of limitations to six years for returns claiming deductions for wages paid to unauthorized aliens and includes protections against taxpayer audits solely based on such deductions. The provisions will take effect for taxable years beginning after December 31, 2024.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3715/all-info