I 
114TH CONGRESS 
1ST SESSION 
H. R. 841 
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 
FEBRUARY 10, 2015 
Mr. KING of Iowa (for himself, Mr. DUNCAN of South Carolina, Mr. JONES, 
and Mr. BARLETTA) 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 the Workforce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
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. 
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— 
(1) the ‘‘New IDEA Act’’; or 
(2) the ‘‘New Illegal Deduction Elimination 
Act’’. 
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SEC. 2. CLARIFICATION THAT WAGES PAID TO UNAUTHOR-
IZED 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 
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 E-Verify Program 
described in section 403(a) of the Illegal Immi-
gration Reform and Immigrant Responsibility 
Act of 1996 (8 U.S.C. 1324a note) and obtains 
confirmation of identity and employment eligi-
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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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