118 
SEC. 425. SHARING OF INFORMATION WITH THE COMMIS-
SIONER OF INTERNAL REVENUE SERVICE. 
Section 405(c)(2)(H) of the Social Security Act (42 
U.S.C. 605(c)(2)(H)) is amended to read as follows: 
‘‘(H) The Commissioner of Social Security 
shall share with the Secretary of the Treas-
ury— 
‘‘(i) the information obtained by the 
Commissioner pursuant to the second sen-
tence of subparagraph (B)(ii) and to sub-
paragraph (C)(ii) for the purpose of ad-
ministering those sections of the Internal 
Revenue Code of 1986 that grant tax bene-
fits based on support or residence of chil-
dren; 
‘‘(ii) information relating to the detec-
tion of wages or income from self-employ-
ment of unauthorized aliens (as defined by 
section 274 of the Immigration and Na-
tionality Act (8 U.S.C. 1324a)), or the in-
vestigation of false statements or fraud by 
such persons incident to administration of 
the immigration, social security, or tax 
laws of the United States; and 
‘‘(iii) information disclosed under this 
subparagraph shall be solely for the use of
119 
the officers and employees to whom such 
information is disclosed in such response 
or investigation.’’. 
SEC. 426. SHARING OF INFORMATION WITH THE SEC-
RETARY OF HOMELAND SECURITY. 
Section 405(c)(2) of the Social Security Act (42 
U.S.C. 405(c)(2)), as amended by section 424, is amended 
by adding at the end the following new subparagraph: 
‘‘(K) Upon the issuance of a Social Secu-
rity account number under subparagraph (B) to 
any individual or the issuance of a Social Secu-
rity card under subparagraph (G) to any indi-
vidual, the Commissioner of Social Security 
shall transmit to the Secretary of Homeland Se-
curity such information received by the Com-
missioner in the individual’s application for 
such number or such card as such Secretary de-
termines necessary and appropriate for admin-
istration of the immigration or social security 
laws of the United States.’’.
120 
Subtitle 
D—Work 
Eligibility 
Verification System Reform in 
the Internal Revenue Agency 
SEC. 431. SHARING OF INFORMATION WITH THE SEC-
RETARY OF HOMELAND SECURITY AND THE 
COMMISSIONER OF SOCIAL SECURITY. 
Section 6103(i) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new para-
graph: 
‘‘(9) DISCLOSURE OF INFORMATION RELATING 
TO VIOLATIONS OF FEDERAL IMMIGRATION LAW.— 
‘‘(A) Upon receipt by the Secretary of a 
written request, by the Secretary of Homeland 
Security, or the Social Security Commissioner, 
the Secretary shall disclosure return informa-
tion to officers and employees of such agency 
who are personally and directly— 
‘‘(i) engaged in preparation for any 
judicial or administrative civil or criminal 
enforcement proceeding against an alien 
under the Immigration and Nationality Act 
(8 U.S.C. 1101 et seq), other than the ad-
judication of any application for a change 
in immigration status or other benefit by 
such alien, or
121 
‘‘(ii) preparation for a civil or criminal 
enforcement proceeding against a citizen or 
national of the United States under sec-
tions 274, 274A, or 274C of the Immigra-
tion and Nationality Act (8 U.S.C. 1324, 
1324a, or 1324c), or 
‘‘(iii) any investigation which may re-
sult in such a proceeding. 
‘‘(B) LIMITATION
ON
USE
OF
INFORMA-
TION.— 
‘‘(i) Information disclosed under this 
paragraph shall be solely for the use of the 
officers and employees to whom such infor-
mation is disclosed in such response or in-
vestigation. 
‘‘(ii) Should the proceeding for which 
such information has been disclosed not 
commence within two years after the date 
on which the information was disclosed by 
the Secretary, the such information shall 
be returned to the Secretary in its entirety, 
and shall not be retained in any form by 
the requestor, unless the taxpayer is noti-
fied in writing as to the information that 
has been retained.’’.
122 
SEC. 432. INELIGIBILITY FOR NONRESIDENT ALIEN TAX 
STATUS. 
Section 7701(b)(1) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subparagraph: 
‘‘(C)(i) An alien who is present in the 
United States while working in any capacity in 
violation of section 274A of the Immigration 
and Nationality Act (8 U.S.C. 1324a) during 
any portion of a calendar year shall be treated 
as an undocumented alien with respect to such 
calendar year. 
‘‘(ii) Such an undocumented alien shall not 
be eligible for nonresident alien tax status dur-
ing such calendar year. 
‘‘(iii) The Secretary shall provide the Sec-
retary of Homeland Security and the Social Se-
curity Commissioner with information sufficient 
to establish the identity and last known address 
of any undocumented alien identified by the 
Secretary.’’. 
SEC. 433. UNLAWFUL USE OF INDIVIDUAL TAXPAYER IDEN-
TIFICATION NUMBERS. 
Chapter 75 of the Internal Revenue Code of 1986 is 
amended by inserting after section 7217 the following:
123 
‘‘SEC. 7218. PROHIBITED USES OF TAXPAYER IDENTIFICA-
TION NUMBERS. 
‘‘(a) It is unlawful for a person to request or use for 
any purpose the taxpayer identification number (TIN) as-
signed to an alien described in section 7701(b)(1), other 
than a resident alien described in subparagraph (A), ex-
cept where required by regulation, or requested for admin-
istration of the tax laws by an officer or employee of the 
Internal Revenue Service. 
‘‘(b) Any person who willfully violates this section 
shall be guilty of a misdemeanor and, upon conviction 
thereof, shall be punished by a fine of not more than 
$2,000 or imprisonment for not more than 1 year, or 
both.’’. 
SEC. 434. NO DEDUCTION ALLOWED FOR COMPENSATION 
PAID TO UNAUTHORIZED WORKERS. 
(a) IN GENERAL.—Section 162(c)(2) of the Internal 
Revenue Code of 1986 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 recruiting 
expense or wage paid to or behalf of an unau-
thorized 
alien, 
as 
defined 
under 
section 
274A(h)(3) of the Immigration and Nationality