bility in compliance with the terms and condi-
tions of the program with respect to the hiring 
(or recruitment or referral) of an employee, 
subparagraph (A) shall not apply with respect 
to wages paid to such employee. 
‘‘(D) BURDEN OF PROOF.—In the case of 
any examination of a return in connection with 
a deduction under this section by reason of this 
paragraph, the Secretary shall bear the burden 
of proving that wages were paid to or on behalf 
of an unauthorized alien. 
‘‘(E) LIMITATION ON TAXPAYER AUDIT.— 
The Secretary may not commence an audit or 
other investigation of a taxpayer solely on the 
basis of a deduction taken under this section by 
reason of this paragraph.’’. 
(b) SIX-YEAR LIMITATION
ON ASSESSMENT
AND 
COLLECTION.—Subsection (c) of section 6501 of the In-
ternal Revenue Code of 1986 (relating to exceptions) is 
amended by adding at the end the following new para-
graph: 
‘‘(12) 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 
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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— 
(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 
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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.— 
(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.’’. 
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(B) RECORDKEEPING.—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 
(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, 2018. 
SEC. 3. MODIFICATION OF E–VERIFY PROGRAM. 
(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 
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employs any individuals in a State may elect to par-
ticipate in the E–Verify Program.’’. 
(2) BENEFIT
OF
REBUTTABLE
PRESUMP-
TION.—Paragraph (1) of section 402(b) of such Act 
is amended by adding at the end the following: ‘‘If 
a person or other entity is participating in the E– 
Verify Program and obtains confirmation of identity 
and employment eligibility in compliance with the 
terms and conditions of the program with respect to 
individuals employed by the person or entity, the 
person or entity has established a rebuttable pre-
sumption that the person or entity has not violated 
section 274A(a)(2) with respect to such individ-
uals.’’. 
(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); 
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‘‘(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 
‘‘(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
E– 
VERIFY 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 Sec-
retary of Homeland Security)’’ and insert-
ing ‘‘after the date of the hiring, or re-
cruitment or referral, in the case of inquir-
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