[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2552 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2552

 To amend the Internal Revenue Code of 1986 to deny the earned income 
   credit to illegal aliens and to prevent fraudulent claims for the 
                         earned income credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            October 7 (legislative day, September 12), 1994

   Mr. Roth introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to deny the earned income 
   credit to illegal aliens and to prevent fraudulent claims for the 
                         earned income credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Illegal Alien Credit Denial Act''.

SEC. 2. DENIAL OF EARNED INCOME CREDIT TO ILLEGAL ALIENS.

    (a) In General.--Paragraph (1) of section 32(c) of the Internal 
Revenue Code of 1986 (defining eligible individual) is amended by 
adding at the end the following new subparagraph:
                    ``(E) Exception for illegal aliens.--The term 
                `eligible individual' does not include any individual 
                who is an illegal alien as of the close of the taxable 
                year.''
    (b) Illegal Alien Defined.--Section 32(c) of the Internal Revenue 
Code of 1986 (relating to definitions and special rules) is amended by 
adding at the end the following new paragraph:
            ``(4) Illegal alien.--
                    ``(A) In general.--The term `illegal alien' means 
                an individual who is not--
                            ``(i) a citizen or national of the United 
                        States, or
                            ``(ii) an alien permanently residing in the 
                        United States under color of law.
                    ``(B) Alien permanently residing in the united 
                states under color of law.--For purposes of 
                subparagraph (A), the term `alien permanently residing 
                in the United States under color of law' means an alien 
                lawfully admitted for permanent residence (within the 
                meaning of section 101(a)(20) of the Immigration and 
                Nationality Act), and includes any of the following:
                            ``(i) An alien who is admitted as a refugee 
                        under section 207 of the Immigration and 
                        Nationality Act.
                            ``(ii) An alien who is granted asylum under 
                        section 208 of such Act.
                            ``(iii) An alien whose deportation is 
                        withheld under section 243(h) of such Act.
                            ``(iv) An alien who is admitted for 
                        temporary residence under section 210, 210A, or 
                        245A of such Act.
                            ``(v) An alien who has been paroled into 
                        the United States under section 212(d)(5) of 
                        such Act for an indefinite period or who has 
                        been granted extended voluntary departure as a 
                        member of a nationality group.
                            ``(vi) An alien who is the spouse or 
                        unmarried child under 21 years of age of a 
                        citizen of the United States, or the parent of 
                        such a citizen if the citizen is over 21 years 
                        of age, and with respect to whom an application 
                        for adjustment to lawful permanent residence is 
                        pending.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1993.

SEC. 3. VERIFICATION OF IDENTITY OF INDIVIDUALS CLAIMING EARNED INCOME 
              CREDIT.

    (a) In General.--Section 32 of the Internal Revenue Code of 1986 
(relating to earned income credit) is amended by adding at the end the 
following new subsection:
    ``(k) Verification of Taxpayer Identification Numbers.--No credit 
shall be allowed under subsection (a) to any taxpayer unless the 
Secretary has verified that the taxpayer identification numbers of the 
taxpayer and any qualifying children set forth on the return claiming 
the credit are valid.''
    (b) Expedited Procedures.--The Secretary of the Treasury and the 
Secretary of Health and Human Services shall establish procedures under 
which--
            (1) the taxpayer identification numbers of individuals 
        claiming the earned income credit under section 32 of the 
        Internal Revenue Code of 1986 are verified, and
            (2) the issuance of taxpayer identification numbers to 
        individuals claiming such credit and entitled to such numbers 
        is expedited.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1994.
                                 <all>