I 
110TH CONGRESS 
1ST SESSION 
H. R. 849 
To amend the Internal Revenue Code of 1986 to require the Secretary 
of the Treasury to notify the Secretary of Homeland Security of employer 
returns showing the employment of individuals not authorized to be 
employed in the United States and to notify the employers that they 
must terminate the employment of those employees, to provide an oppor-
tunity for those employees to contest the information, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 6, 2007 
Mr. GALLEGLY introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Edu-
cation and Labor and the Judiciary, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to require 
the Secretary of the Treasury to notify the Secretary 
of Homeland Security of employer returns showing the 
employment of individuals not authorized to be employed 
in the United States and to notify the employers that 
they must terminate the employment of those employees, 
to provide an opportunity for those employees to contest 
the information, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stop the Misuse of 
ITINs Act of 2007’’. 
SEC. 2. NOTIFICATION OF EMPLOYMENT STATUS OF INDI-
VIDUALS NOT AUTHORIZED TO WORK IN THE 
UNITED STATES. 
(a) IN GENERAL.—Subsection (i) of section 6103 of 
the Internal Revenue Code of 1986 (relating to confiden-
tiality and disclosure of returns and return information) 
is amended by adding at the end the following new para-
graph: 
‘‘(9) DISCLOSURE
TO
SECRETARY
OF
HOME-
LAND SECURITY OF EMPLOYMENT INFORMATION OF 
EMPLOYEES NOT AUTHORIZED TO BE EMPLOYED IN 
UNITED STATES.— 
‘‘(A) IN GENERAL.—If— 
‘‘(i) the Secretary receives a return 
from any person or entity (hereafter in this 
paragraph referred to as the ‘employer’) 
showing wages (as defined in section 
3121(a)) paid to any employee, and 
‘‘(ii) the TIN of such employee, as 
shown on such return, indicates that such 
employee is not authorized to be employed 
in the United States, 
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the Secretary shall provide electronically to the 
Secretary of Homeland Security the following 
information as shown on such return: the name, 
address, and TIN of such employee and the 
name, address, and employer identification 
number of the employer. 
‘‘(B) NOTICE
TO
EMPLOYER
AND
EM-
PLOYEE.—Whenever the Secretary sends a no-
tice under subparagraph (A) with respect to 
any employer and employee, the Secretary also 
shall notify the employer and the employee in 
writing that such employee is not authorized to 
be employed in the United States and that the 
employee’s employment with the employer 
should be terminated not later than the 30th 
day after the date of the notice. Such notice 
shall also describe— 
‘‘(i) the employer’s obligations under 
this paragraph, 
‘‘(ii) the employee’s right under this 
paragraph to contest the determination 
that the employee is not authorized to be 
employed in the United States, and 
‘‘(iii) the procedure under this para-
graph for contesting such determination. 
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‘‘(C) EMPLOYEE’S RIGHT TO CONTEST.— 
‘‘(i) NOTICE TO EMPLOYEE.—If any 
employer receives such a notice from the 
Secretary with respect to an employee, the 
employer shall, within 3 business days 
after the date the employer received such 
notice, provide a copy of such notice to the 
employee. 
‘‘(ii) RIGHT
TO
CONTEST.—An em-
ployee may contest the accuracy of such 
notice during the 30-day period beginning 
on the date that the employer provided the 
notice under clause (i) to the employee. 
‘‘(iii) CONTEST PROCEDURE.—If, dur-
ing such 30-day period, the employee pro-
vides the employer with information sub-
stantiating such employee’s claimed au-
thorization to be employed in the United 
States, the employer shall, in such form 
and manner as the Secretary shall pre-
scribe, provide to the Secretary— 
‘‘(I) the employee’s name, ad-
dress, 
and 
taxpayer 
identification 
number, 
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‘‘(II) the employer’s name, ad-
dress, telephone number, and em-
ployer identification number, and 
‘‘(III) the information provided 
by the employee to the employer sub-
stantiating such employee’s authoriza-
tion to be employed in the United 
States. 
‘‘(D) VERIFICATION
FROM
DEPARTMENT 
OF HOMELAND SECURITY.— 
‘‘(i) TRANSMITTAL
OF
INQUIRY.— 
Within 3 business days after receiving the 
information described in subparagraph 
(C)(iii), the Secretary shall provide such 
information electronically to the Secretary 
of Homeland Security. 
‘‘(ii) RESPONSE.—Within 7 business 
days after receiving such information, the 
Secretary of Homeland Security shall elec-
tronically notify the Secretary, and shall 
notify the employer and employee in writ-
ing, as to whether the employee is author-
ized to be employed in the United States. 
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‘‘(E) SUSPENSION OF OBLIGATION TO TER-
MINATE
EMPLOYMENT
UNTIL
RESPONSE
RE-
CEIVED.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), if the employee meets 
the requirement of subparagraph (C)(iii), 
the employer’s obligation to terminate the 
employment of such employee shall be sus-
pended until the employer receives the no-
tice described in subparagraph (D)(ii). 
‘‘(ii) TIMELY
RESPONSE
NOT
RE-
CEIVED.—If the employer does not receive 
such notice before the 30th day after the 
close such 30-day period, the employer 
shall so notify the Secretary. 
‘‘(F) REBUTTABLE PRESUMPTION OF VIO-
LATION
OF
THE
IMMIGRATION
AND
NATION-
ALITY ACT.— 
‘‘(i) IN GENERAL.—A rebuttable pre-
sumption is created that the employer has 
violated section 274A(a)(1)(A) of the Im-
migration and Nationality Act if— 
‘‘(I) the employer employs an in-
dividual with respect to whom a notice 
is received under subparagraph (B) 
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after the 30 days described in such 
subparagraph, 
‘‘(II) the employer fails to notify 
the Secretary as required by subpara-
graph (E)(ii) and employs such indi-
vidual, or 
‘‘(III) the employer refers the in-
dividual for employment after receiv-
ing a notice under subparagraph (B) 
with respect to such individual. 
‘‘(ii) EXCEPTIONS.— 
‘‘(I) 
SUSPENSION
PERIOD.— 
Clause (i)(I) shall not apply during 
the suspension period described in 
subparagraph (E)(i) 
‘‘(II) NOTICE FROM SECRETARY 
OF HOMELAND SECURITY.—Clause (i) 
shall cease to apply with respect to an 
individual after the date that the em-
ployer is notified by the Secretary of 
Homeland Security that such indi-
vidual is authorized to be employed in 
the United States. 
‘‘(G) REFUNDS
DENIED.—No refund of 
any tax imposed by this title shall be made to 
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any individual for any taxable year during any 
portion of which such individual is employed in 
the United States without being authorized to 
be so employed. 
‘‘(H) SPECIAL RULES.— 
‘‘(i) PROTECTION FROM LIABILITY.— 
No employer shall be civilly or criminally 
liable under any law for any action taken 
in good faith reliance on information pro-
vided by the Secretary or the Secretary of 
Homeland Security with respect to any in-
dividual’s eligibility to be employed in the 
United States. 
‘‘(ii) TIMELY
MAILING
TREATED
AS 
TIMELY
NOTICE.—Rules similar to the 
rules of section 7502 shall apply for pur-
poses of this section. 
‘‘(iii) LAST KNOWN ADDRESS OF EM-
PLOYEE.—Any notice required to be pro-
vided to an employee under this section 
shall be sufficient if mailed to the employee 
at the last known address of the em-
ployee.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (4) of 
section 6103(p) of such Code is amended by striking ‘‘(5) 
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or (7)’’ each place it appears and inserting ‘‘(5), (7), or 
(9)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to returns received more than 180 
days after the date of the enactment of this Act. 
Æ 
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