SEC. 322. FEDERAL TORT CLAIMS ACT REMEDY. 
If an individual alleges that the individual would not 
have been dismissed from a job but for an error of the 
verification mechanism, the individual may seek com-
pensation only through the mechanism of chapter 171 of 
title 28, United States Code (popularly known as the Fed-
eral Tort Claims Act), and injunctive relief to correct such 
error. No class action may be brought under this subtitle. 
SEC. 323. PROTECTION FROM LIABILITY FOR ACTIONS 
TAKEN ON THE BASIS OF INFORMATION. 
No person or entity shall be civilly or criminally liable 
for any action taken in good faith reliance on information 
provided through the employment eligibility verification 
mechanism established under this subtitle. 
Subtitle C—New IDEA (Illegal 
Deduction Elimination Act) 
SEC. 331. SHORT TITLE. 
This subtitle may be cited as the ‘‘New IDEA (Illegal 
Deduction Elimination Act)’’. 
SEC. 332. CLARIFICATION THAT WAGES PAID TO UNAU-
THORIZED ALIENS MAY NOT BE DEDUCTED 
FROM GROSS INCOME. 
(a) IN GENERAL.—Subsection (c) of section 162 of 
the Internal Revenue Code of 1986 (relating to illegal 
bribes, kickbacks, and other payments) is amended by 
adding at the end the following new paragraph: 
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‘‘(4) WAGES PAID TO OR ON BEHALF OF UNAU-
THORIZED ALIENS.— 
‘‘(A) IN GENERAL.—No deduction shall be 
allowed under subsection (a) for any wage paid 
to or on behalf of an unauthorized alien, as de-
fined under section 274A(h)(3) of the Immigra-
tion 
and 
Nationality 
Act 
(8 
U.S.C. 
1324a(h)(3)). 
‘‘(B) WAGES.—For the purposes of this 
paragraph, the term ‘wages’ means all remu-
neration for employment, including the cash 
value of all remuneration (including benefits) 
paid in any medium other than cash. 
‘‘(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.’’. 
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(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: 
‘‘(10) 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 Illegal Immigration Re-
form and Immigrant Responsibility Act of 1996 is amend-
ed— 
(1) in subparagraph (b)(5), by inserting ‘‘, sec-
tion 162(c)(4) of the Internal Revenue Code of 
1986,’’ after ‘‘enforcement of this chapter’’; 
(2) in subparagraph (d)(2)(F), by inserting ‘‘, 
section 162(c)(4) of the Internal Revenue Code of 
1986,’’ after ‘‘enforcement of this chapter’’; 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’’. 
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