(1) the name and location of each employer re-
porting benefits for an individual; 
(2) a warning that any inaccuracies in this in-
formation could indicate that the individual’s SSN is 
being fraudulently used by another individual; 
(3) an explanation of any potential risk that an 
individual is subject to if his or her SSN has been 
used or is being used by someone else; and 
(4) an SSA telephone number that an indi-
vidual may call to report inaccuracies in the use of 
their SSN. 
(b) INFORMATION SHARING WITH
THE DEPART-
MENT OF HOMELAND SECURITY.— 
(1) Not later than 180 days following the date 
of enactment of this act, the Commissioner of Social 
Security shall promulgate regulations in accord with 
section 1306, title 42 (42 U.S.C. 1306), to require 
that information regarding all multiple use notifica-
tions that lead to the identification of an unauthor-
ized user of a Social Security account number be 
shared with the Secretary of the Department of 
Homeland Security on a timely basis. 
(2) Information to be shared with the Secretary 
shall include, at a minimum, the name and mailing 
address of all employees who are the subject of an 
VerDate Mar 15 2010 
21:54 Jun 01, 2011
Jkt 099200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H2000.IH
H2000
emcdonald on DSK2BSOYB1PROD with BILLS
unresolved mismatch notification or who are unau-
thorized users of another individual’s Social Security 
account number. The names and addresses of the 
employers of these employees must also be provided. 
(3) The Secretary shall report to Congress an-
nually the number of cases that the Commissioner of 
Social Security has shared with the Department of 
Homeland Security regarding unauthorized users of 
a Social Security number and the actions that have 
been taken to resolve these cases. The first report 
shall be presented to Congress 1 year after the pas-
sage of this Act. 
SEC. 204. ESTABLISHMENT OF ELECTRONIC BIRTH AND 
DEATH REGISTRATION SYSTEMS. 
(a) In consultation with the Secretary of Health and 
Human Services and the Commissioner of Social Security, 
the Secretary shall take the following actions: 
(1) Work with the States to establish a common 
data set and common data exchange protocol for 
electronic birth registration systems and death reg-
istration systems. 
(2) Coordinate requirements for such systems 
to align with a national model. 
(3) Ensure that fraud prevention is built into 
the design of electronic vital registration systems in 
VerDate Mar 15 2010 
21:54 Jun 01, 2011
Jkt 099200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H2000.IH
H2000
emcdonald on DSK2BSOYB1PROD with BILLS
the collection of vital event data, the issuance of 
birth certificates, and the exchange of data among 
government agencies. 
(4) Ensure that electronic systems for issuing 
birth certificates, in the form of printed abstracts of 
birth records or digitized images, employ a common 
format of the certified copy, so that those requiring 
such documents can quickly confirm their validity. 
(5) Establish uniform field requirements for 
State birth registries. 
(6) Not later than 1 year after the date of the 
enactment of this Act, establish a process with the 
Department of Defense that will result in the shar-
ing of data, with the States and the Social Security 
Administration, regarding deaths of United States 
military personnel and the birth and death of their 
dependents. 
(7) Not later than 1 year after the date of the 
enactment of this Act, establish a process with the 
Department of State to improve registration, notifi-
cation, and the sharing of data with the States and 
the Social Security Administration, regarding births 
and deaths of United States citizens abroad. 
(8) Not later than 3 years after the date of es-
tablishment of databases provided for under this sec-
VerDate Mar 15 2010 
21:54 Jun 01, 2011
Jkt 099200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H2000.IH
H2000
emcdonald on DSK2BSOYB1PROD with BILLS
tion, require States to record and retain electronic 
records of pertinent identification information col-
lected from requestors who are not the registrants. 
(9) Not later than 6 months after the date of 
the enactment of this Act, submit to Congress a re-
port on whether there is a need for Federal laws to 
address penalties for fraud and misuse of vital 
records and whether violations are sufficiently en-
forced. 
SEC. 205. PENALTY FOR FAILURE TO FILE CORRECT INFOR-
MATION RETURNS. 
(a) IN GENERAL.—Section 6721 of the Internal Rev-
enue Code of 1986 (26 U.S.C. 6721) is amended by add-
ing at the end the following: 
‘‘(g) MOST EGREGIOUS NONCOMPLIANT EMPLOY-
ERS.—The Secretary shall assess the maximum allowable 
penalties on 100 percent of the employers designated in 
any tax year by the Social Security Administration as the 
most egregious noncompliant employers. 
‘‘(h) EMPLOYMENT OF ALIEN NOT AUTHORIZED TO 
BE EMPLOYED.—Notwithstanding any other provision in 
this section, in the case of a failure described in subsection 
(a)(2) with respect to any person employing an alien not 
authorized to be so employed, the penalty under this sec-
VerDate Mar 15 2010 
21:54 Jun 01, 2011
Jkt 099200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H2000.IH
H2000
emcdonald on DSK2BSOYB1PROD with BILLS
tion shall be determined in accordance with the following 
table: 
‘‘In the case of— 
Not less than— 
Not more than— 
The first offense .............
$2,500 ...........................
$5,000 
The second offense .........
$7,500 ...........................
$10,000 
The third offense ............
$25,000 .........................
$40,000.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to with respect to information 
returns required to be filed for years beginning after De-
cember 31, 2010. 
SEC. 206. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums 
as may be required to carry out this subtitle. 
Subtitle B—Nondeductibility of 
Wages Paid to Unauthorized Aliens 
SEC. 211. 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: 
‘‘(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 
VerDate Mar 15 2010 
21:54 Jun 01, 2011
Jkt 099200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H2000.IH
H2000
emcdonald on DSK2BSOYB1PROD with BILLS