H.R. 3095House109th Congress (2005-2007)In Committee

New IDEA (Illegal Deduction Elimination Act)

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.

Sponsored by Steve KingRep. Steve King (R-IA)
Introduced June 28, 2005

Legislative Activity

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3 earlier actions
HouseIntro Referral Latest Action

Sponsor introductory remarks on measure. (CR H2094)

May 3, 2006

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HouseIntro Referral

Introduced in House

June 28, 2005

HouseIntro Referral

Referred to the House Committee on Ways and Means.

June 28, 2005

HouseIntro Referral

Sponsor introductory remarks on measure. (CR H9630-9631)

November 3, 2005

HouseIntro Referral

Sponsor introductory remarks on measure. (CR H2094)

May 3, 2006

Floor Debate

1 member

What members said about H.R. 3095 on the floor

1 Republican
Steve King
Rep. Steve KingR-IA-5 · Mar 8, 2006

Mr. Speaker, I appreciate the privilege to address you, Mr. Speaker, and address this United States House of Representatives. I have a series of issues on my mind here tonight. As I listened to some…

Steve King
Rep. Steve KingR-IA-5 · May 3, 2006

As always, I profoundly appreciate the opportunity to address you, Mr. Speaker, and in doing so addressing this Chamber; and the echo of the voice that comes here echoes to the American people all…

Steve King
Rep. Steve KingR-IA-5 · Dec 15, 2005

Madam Speaker, today as we celebrate Iraqi Freedom Day, I want to raise a different subject, and that is that we will be bringing legislation to the floor of this House that will bring some…

Bill Text

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Introduced in HouseIssued June 28, 2005

I

109th CONGRESS

1st Session

H. R. 3095

IN THE HOUSE OF REPRESENTATIVES

June 28, 2005

Mr. King of Iowa (for himself, Mr. Shaw, Mr. Smith of Texas, Mr. Hostettler, Mr. Gallegly, Mr. Calvert, Mr. Inglis of South Carolina, Mr. Hayworth, Mr. Gohmert, Mr. Franks of Arizona, Mr. Norwood, Mr. Lewis of Kentucky, Mr. Beauprez, Mr. Bachus, Mr. Pence, Mr. Linder, Mr. Sensenbrenner, and Mr. Goodlatte) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

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.

1.

Short title

This Act may be cited as the New IDEA (Illegal Deduction Elimination Act).

2.

Clarification that wages paid to unauthorized 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 unauthorized 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 defined under section 274A(h)(3) of the Immigration and Nationality Act (8 U.S.C. 1324a(h)(3)).

(B)

Wages

For the purposes of this paragraph, the term wages means all remuneration 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 Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) and obtains confirmation of identity and employment eligibility in compliance with the terms and conditions 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.

.

(b)

6-year limitation on assessment and collection

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 Reform and Immigrant Responsibility Act of 1996 is amended—

(1)

in subparagraph (b)(5), by inserting , section 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.

(d)

Availability of information

The Commissioner of Social Security shall make available to the Commissioner of Internal Revenue any information related to the investigation and enforcement of section 162(c)(4) of the Internal Revenue Code of 1986, including any no-match letter and any information in the suspense earnings file.

(e)

Effective date

(1)

Except as provided in paragraph (2), this Act and the amendments made by this Act shall take effect on the date of the enactment of this Act.

(2)

The amendments made by subsections (a) and (b) shall apply to taxable years beginning after December 31, 2005.