I 
110TH CONGRESS 
2D SESSION 
H. R. 6813 
To amend the Internal Revenue Code of 1986 to clarify that wages paid 
to unauthorized aliens may not be deducted from gross income, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2008 
Mr. KING of Iowa (for himself, Mr. BARTLETT of Maryland, Mr. BILBRAY, 
Mrs. BLACKBURN, Mrs. BOYDA of Kansas, Mr. BROUN of Georgia, Mr. 
BROWN of South Carolina, Mr. GOHMERT, Ms. GINNY BROWN-WAITE of 
Florida, Mr. BURGESS, Mr. BURTON of Indiana, Mr. CALVERT, Mr. 
CARTER, Mrs. CUBIN, Mr. CULBERSON, Mr. DAVID DAVIS of Tennessee, 
Mr. DEAL of Georgia, Mr. DOOLITTLE, Mrs. DRAKE, Mr. DUNCAN, Mr. 
EVERETT, Ms. FALLIN, Mr. FEENEY, Mr. FORBES, Ms. FOXX, Mr. 
FRANKS of Arizona, Mr. GALLEGLY, Mr. GINGREY, Mr. GOODE, Mr. 
GOODLATTE, Mr. ISSA, Mr. JONES of North Carolina, Mr. JORDAN of 
Ohio, Mr. KINGSTON, Mr. LATTA, Mr. LEWIS of Kentucky, Mr. LINDER, 
Mr. MANZULLO, Mr. MCCAUL of Texas, Mr. MCCOTTER, Mr. GARY G. 
MILLER of California, Mr. MILLER of Florida, Mrs. MYRICK, Mr. 
NEUGEBAUER, Mr. PITTS, Mr. POE, Mr. ROHRABACHER, Mr. ROSKAM, 
Mr. SENSENBRENNER, Mr. SESSIONS, Mr. SHADEGG, Mr. SHULER, Mr. 
SMITH of Texas, Mr. TANCREDO, Mr. WALBERG, Mr. WELDON of Flor-
ida, and Mr. WESTMORELAND) introduced the following bill; which was 
referred to the Committee on Ways and Means, and in addition to the 
Committees on the Judiciary and Education and Labor, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to clarify 
that wages paid to unauthorized aliens may not be de-
ducted from gross income, and for other purposes. 
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‘‘(C) SAFE HARBOR.—If a person or other 
entity is participating in the basic pilot program 
described in section 403 of the Illegal Immigra-
tion Reform and Immigrant Responsibility Act 
of 1996 (8 U.S.C. 1324a note) and obtains con-
firmation of identity and employment eligibility 
in compliance with the terms and conditions of 
the program with respect to the hiring (or re-
cruitment or referral) of an employee, subpara-
graph (A) shall not apply with respect to wages 
paid to such employee.’’. 
(b) 6-YEAR LIMITATION ON ASSESSMENT AND COL-
LECTION.—Subsection (c) of section 6501 of such Code 
(relating to exceptions) is amended by adding at the end 
the following new paragraph: 
‘‘(11) DEDUCTION CLAIMED FOR WAGES PAID 
TO UNAUTHORIZED ALIENS.—In the case of a return 
of tax on which a deduction is shown in violation of 
section 162(c)(4), any tax under chapter 1 may be 
assessed, or a proceeding in court for the collection 
of such tax may be begun without assessment, at 
any time within 6 years after the return was filed.’’. 
(c) USE OF DOCUMENTATION FOR ENFORCEMENT 
PURPOSES.—Section 274A of the Immigration and Na-
tionality Act (8 U.S.C. 1324a) is amended— 
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(1) in subparagraph (b)(5), by inserting ‘‘, sec-
tion 162(c)(4) of the Internal Revenue Code of 
1986,’’ after ‘‘enforcement of this Act’’; 
(2) in subparagraph (d)(2)(F), by inserting ‘‘, 
section 162(c)(4) of the Internal Revenue Code of 
1986,’’ after ‘‘enforcement of this Act’’; and 
(3) in subparagraph (d)(2)(G), by inserting 
‘‘section 162(c)(4) of the Internal Revenue Code of 
1986 or’’ after ‘‘or enforcement of’’. 
(d) AVAILABILITY OF INFORMATION.— 
(1) IN GENERAL.—The Commissioner of Social 
Security, the Secretary of the Department of Home-
land Security, and the Secretary of the Treasury, 
shall jointly establish a program to share informa-
tion among such agencies that may or could lead to 
the identification of unauthorized aliens (as defined 
under section 274A(h)(3) of the Immigration and 
Nationality Act), including any no-match letter, any 
information in the earnings suspense file, and any 
information in the investigation and enforcement of 
section 162(c)(4) of the Internal Revenue Code of 
1986. 
(2) DISCLOSURE
BY
SECRETARY
OF
THE 
TREASURY.— 
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(A) IN GENERAL.—Subsection (i) of sec-
tion 6103 of the Internal Revenue Code of 1986 
is amended by adding at the end the following 
new paragraph: 
‘‘(9) PAYMENT OF WAGES TO UNAUTHORIZED 
ALIENS.—Upon request from the Commissioner of 
the Social Security Administration or the Secretary 
of the Department of Homeland Security, the Sec-
retary shall disclose to officers and employees of 
such Administration or Department— 
‘‘(A) taxpayer identity information of em-
ployers who paid wages with respect to which a 
deduction was not allowed by reason of section 
162(c)(4), and 
‘‘(B) taxpayer identity information of indi-
viduals to whom such wages were paid, 
for purposes of carrying out any enforcement activi-
ties of such Administration or Department with re-
spect to such employers or individuals.’’. 
(B) RECORD KEEPING.—Paragraph (4) of 
section 6103(p) of such Code is amended— 
(i) by striking ‘‘(5), or (7)’’ in the 
matter preceding subparagraph (A) and in-
serting ‘‘(5), (7), or (9)’’, and 
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(ii) by striking ‘‘(5) or (7)’’ in sub-
paragraph (F)(ii) and inserting ‘‘(5), (7), 
or (9)’’. 
(e) EFFECTIVE DATE.— 
(1) Except as provided in paragraph (2), this 
Act and the amendments made by this Act shall 
take effect on the date of the enactment of this Act. 
(2) The amendments made by subsections (a) 
and (b) shall apply to taxable years beginning after 
December 31, 2007. 
SEC. 3. MODIFICATION OF BASIC PILOT PROGRAM FOR EM-
PLOYMENT ELIGIBILITY VERIFICATION. 
(a) MAKING PERMANENT.—Subsection (b) of section 
401 of the Illegal Immigration Reform and Immigrant Re-
sponsibility Act of 1996 (8 U.S.C.1324a note) is amended 
by striking the last sentence. 
(b) APPLICATION TO CURRENT EMPLOYEES.— 
(1) VOLUNTARY ELECTION.—The first sentence 
of section 402(a) of such Act is amended to read as 
follows: ‘‘Any person or other entity that conducts 
any hiring (or recruitment or referral) in a State or 
employs any individuals in a State may elect to par-
ticipate in a pilot program.’’. 
(2) BENEFIT
OF
REBUTTABLE
PRESUMP-
TION.—Paragraph (1) of section 402(b) of such Act 
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is amended by adding at the end the following: ‘‘If 
a person or other entity is participating in a pilot 
program and obtains confirmation of identity and 
employment eligibility in compliance with the terms 
and conditions of the program with respect to indi-
viduals employed by the person or entity, the person 
or entity has established a rebuttable presumption 
that the person or entity has not violated section 
274A(a)(2) with respect to such individuals.’’. 
(3) SCOPE OF ELECTION.—Subparagraph (A) 
of section 402(c)(2) of such Act is amended to read 
as follows: 
‘‘(A) IN GENERAL.—Any electing person or 
other entity may provide that the election under 
subsection (a) shall apply (during the period in 
which the election is in effect)— 
‘‘(i) to all its hiring (and all recruit-
ment or referral); 
‘‘(ii) to all its hiring (and all recruit-
ment or referral and all individuals em-
ployed by the person or entity); 
‘‘(iii) to all its hiring (and all recruit-
ment or referral) in one or more States or 
one or more places of hiring (or recruit-
ment or referral, as the case may be); or 
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‘‘(iv) to all its hiring (and all recruit-
ment or referral and all individuals em-
ployed by the person or entity) in one or 
more States or one or more place of hiring 
(or recruitment or referral or employment, 
as the case may be).’’. 
(4) PROCEDURES FOR PARTICIPANTS IN BASIC 
PILOT PROGRAM.—Subsection (a) of section 403 of 
such Act is amended— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘or continued employment in the 
United States’’ after ‘‘United States’’; and 
(B) in paragraph (3)— 
(i) in subparagraph (A), by striking 
all that follows ‘‘(as specified by the Attor-
ney General)’’ and inserting ‘‘after the 
date of the hiring, or recruitment or refer-
ral, in the case of inquiries made pursuant 
to a hiring, recruitment or referral (and 
not of previously hired individuals).’’; and 
(ii) in subparagraph (B), by striking 
‘‘such 3 working days’’ and inserting ‘‘the 
specified period’’. 
Æ 
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