I

103D CONGRESS

2D SESSION H. R. 5301

To amend the Internal Revenue Code of 1986 to deny the earned income

credit to illegal aliens and to prevent fraudulent claims for the earned

income credit.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 29, 1994

Mr. HAYES introduced the following bill; which was referred to the Committee

on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to deny the

earned income credit to illegal aliens and to prevent

fraudulent claims for the earned income credit.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Illegal Alien Credit

5 Denial Act’’.

6 SEC. 2. DENIAL OF EARNED INCOME CREDIT TO ILLEGAL

7 ALIENS.

8 (a) IN GENERAL.—Paragraph (1) of section 32(c) of

9 the Internal Revenue Code of 1986 (defining eligible indi-
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1 vidual) is amended by adding at the end the following new

2 subparagraph:

3 ‘‘(E) EXCEPTION FOR ILLEGAL ALIENS.—

4 The term ‘eligible individual’ does not include

5 any individual who is an illegal alien as of the

6 close of the taxable year.’’

7 (b) ILLEGAL ALIEN DEFINED.—Section 32(c) of the

8 Internal Revenue Code of 1986 (relating to definitions and

9 special rules) is amended by adding at the end the follow10 ing new paragraph:

11 ‘‘(4) ILLEGAL ALIEN.—

12 ‘‘(A) IN GENERAL.—The term ‘illegal

13 alien’ means an individual who is not—

14 ‘‘(i) a citizen or national of the United

15 States, or

16 ‘‘(ii) an alien permanently residing in

17 the United States under color of law.

18 ‘‘(B) ALIEN PERMANENTLY RESIDING IN

19 THE UNITED STATES UNDER COLOR OF LAW.—

20 For purposes of subparagraph (A), the term

21 ‘alien permanently residing in the United States

22 under color of law’ means an alien lawfully ad23 mitted for permanent residence (within the

24 meaning of section 101(a)(20) of the Immigra-
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1 tion and Nationality Act), and includes any of

2 the following:

3 ‘‘(i) An alien who is admitted as a ref4 ugee under section 207 of the Immigration

5 and Nationality Act.

6 ‘‘(ii) An alien who is granted asylum

7 under section 208 of such Act.

8 ‘‘(iii) An alien whose deportation is

9 withheld under section 243(h) of such Act.

10 ‘‘(iv) An alien who is admitted for

11 temporary residence under section 210,

12 210A, or 245A of such Act.

13 ‘‘(v) An alien who has been paroled

14 into the United States under section

15 212(d)(5) of such Act for an indefinite pe16 riod or who has been granted extended vol17 untary departure as a member of a nation18 ality group.

19 ‘‘(vi) An alien who is the spouse or

20 unmarried child under 21 years of age of

21 a citizen of the United States, or the par22 ent of such a citizen if the citizen is over

23 21 years of age, and with respect to whom

24 an application for adjustment to lawful

25 permanent residence is pending.’’
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 December 31, 1993.

4 SEC. 3. VERIFICATION OF IDENTITY OF INDIVIDUALS

5 CLAIMING EARNED INCOME CREDIT.

6 (a) IN GENERAL.—Section 32 of the Internal Reve7 nue Code of 1986 (relating to earned income credit) is

8 amended by adding at the end the following new sub9 section:

10 ‘‘(k) VERIFICATION OF TAXPAYER IDENTIFICATION

11 NUMBERS.—No credit shall be allowed under subsection

12 (a) to any taxpayer unless the Secretary has verified that

13 the taxpayer identification numbers of the taxpayer and

14 any qualifying children set forth on the return claiming

15 the credit are valid.’’

16 (b) EXPEDITED PROCEDURES.—The Secretary of the

17 Treasury and the Secretary of Health and Human Serv18 ices shall establish procedures under which—

19 (1) the taxpayer identification numbers of indi20 viduals claiming the earned income credit under sec21 tion 32 of the Internal Revenue Code of 1986 are

22 verified, and

23 (2) the issuance of taxpayer identification num24 bers to individuals claiming such credit and entitled

25 to such numbers is expedited.
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1 (c) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall apply to taxable years beginning after

3 December 31, 1994.

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