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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Illegal Alien Credit
Denial Act’’.
SEC. 2. DENIAL OF EARNED INCOME CREDIT TO ILLEGAL
ALIENS.
(a) IN GENERAL.—Paragraph (1) of section 32(c) of
the Internal Revenue Code of 1986 (defining eligible indi-
vidual) is amended by adding at the end the following new
subparagraph:
‘‘(E) EXCEPTION FOR ILLEGAL ALIENS.—
The term ‘eligible individual’ does not include
any individual who is an illegal alien as of the
close of the taxable year.’’
(b) ILLEGAL ALIEN DEFINED.—Section 32(c) of the
Internal Revenue Code of 1986 (relating to definitions and
special rules) is amended by adding at the end the follow-
ing new paragraph:
‘‘(4) ILLEGAL ALIEN.—
‘‘(A) IN
GENERAL.—The term ‘illegal
alien’ means an individual who is not—
‘‘(i) a citizen or national of the United
States, or
‘‘(ii) an alien permanently residing in
the United States under color of law.
‘‘(B) ALIEN PERMANENTLY RESIDING IN
THE UNITED STATES UNDER COLOR OF LAW.—
For purposes of subparagraph (A), the term
‘alien permanently residing in the United States
under color of law’ means an alien lawfully ad-
mitted for permanent residence (within the
meaning of section 101(a)(20) of the Immigra-
tion and Nationality Act), and includes any of
the following:
‘‘(i) An alien who is admitted as a ref-
ugee under section 207 of the Immigration
and Nationality Act.
‘‘(ii) An alien who is granted asylum
under section 208 of such Act.
‘‘(iii) An alien whose deportation is
withheld under section 243(h) of such Act.
‘‘(iv) An alien who is admitted for
temporary residence under section 210,
210A, or 245A of such Act.
‘‘(v) An alien who has been paroled
into the United States under section
212(d)(5) of such Act for an indefinite pe-
riod or who has been granted extended vol-
untary departure as a member of a nation-
ality group.
‘‘(vi) An alien who is the spouse or
unmarried child under 21 years of age of
a citizen of the United States, or the par-
ent of such a citizen if the citizen is over
21 years of age, and with respect to whom
an application for adjustment to lawful
permanent residence is pending.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1993.
SEC. 3. VERIFICATION OF IDENTITY OF INDIVIDUALS
CLAIMING EARNED INCOME CREDIT.
(a) IN GENERAL.—Section 32 of the Internal Reve-
nue Code of 1986 (relating to earned income credit) is
amended by adding at the end the following new sub-
section:
‘‘(k) VERIFICATION OF TAXPAYER IDENTIFICATION
NUMBERS.—No credit shall be allowed under subsection
(a) to any taxpayer unless the Secretary has verified that
the taxpayer identification numbers of the taxpayer and
any qualifying children set forth on the return claiming
the credit are valid.’’
(b) EXPEDITED PROCEDURES.—The Secretary of the
Treasury and the Secretary of Health and Human Serv-
ices shall establish procedures under which—
(1) the taxpayer identification numbers of indi-
viduals claiming the earned income credit under sec-
tion 32 of the Internal Revenue Code of 1986 are
verified, and
(2) the issuance of taxpayer identification num-
bers to individuals claiming such credit and entitled
to such numbers is expedited.
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
December 31, 1994.
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