S. 2974

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2974 Introduced in Senate (IS)]

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119th CONGRESS
1st Session
S. 2974

To amend the Internal Revenue Code of 1986 to require taxpayers 
claiming the child and earned income tax credits, and their qualifying 
children, to have a valid social security number for employment 
purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

October 3, 2025

Mrs. Hyde-Smith 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 require taxpayers 
claiming the child and earned income tax credits, and their qualifying 
children, to have a valid social security number for employment 
purposes.

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 ``Status Eligibility Confirmation and 
Updated Requirements for Earned Benefits Act of 2025'' or the ``SECURE 
Benefits Act of 2025''.

SEC. 2. TEMPORARY WORK AUTHORIZATION.

(a) In General.--Section 205(c)(2) of the Social Security Act (42 
U.S.C. 405(c)(2)) is amended by adding at the end the following new 
subparagraph:
``(I) Temporary Work-Authorized Social Security Number.--
``(i) In general.--In the case of an individual who has 
been issued a temporary work authorization by the Secretary of 
Homeland Security, the Commissioner shall--
``(I) assign a temporary work-authorized social 
security number to such individual; and
``(II) in a manner consistent with subparagraph 
(G), issue a social security card to such individual 
which, on the face of such card, indicates that the 
temporary work-authorized social security number is 
valid solely with respect to such employment, and for 
such period, as granted by the Department of Homeland 
Security pursuant to their temporary work 
authorization.
``(ii) Information sharing.--
``(I) Temporary work-authorizations.--The Secretary 
of Homeland Security shall share with the Commissioner 
any information with respect to the status of any 
temporary work authorization which has been issued by 
the Secretary of Homeland Security for the purpose of 
administering this subparagraph, including--
``(aa) the expiration date for such 
temporary work authorization;
``(bb) any reauthorization of such 
temporary work authorization;
``(cc) whether such temporary work 
authorization is restricted to specific 
employers or employment circumstances; and
``(dd) any changes or adjustments with 
respect to such temporary work authorization 
which have been reported to the Secretary of 
Homeland Security.
``(II) Coordination with internal revenue 
service.--The Commissioner shall share with the 
Secretary (as defined in section 7701(a)(11)(B) of the 
Internal Revenue Code of 1986) any information provided 
to the Commissioner pursuant to subclause (I), 
including any temporary work-authorized social security 
number which has been issued by the Commissioner 
pursuant to a temporary work authorization.
``(iii) Definitions.--In this subparagraph:
``(I) Commissioner.--The term `Commissioner' means 
the Commissioner of Social Security.
``(II) Temporary work authorization.--The term 
`temporary work authorization' means work authorization 
granted to an alien within a class of aliens described 
in subsection (b) or (c) of section 274a.12 of title 8, 
Code of Federal Regulations, as in effect on the date 
of the enactment of this subparagraph, the validity of 
which is dependent upon the maintenance of nonimmigrant 
or other temporary legal status.''.
(b) Conforming Amendment.--Section 205(c)(2)(B)(i)(I) of the Social 
Security Act (42 U.S.C. 405(c)(2)(B)(i)(I)) is amended by inserting 
``subject to subparagraph (I),'' before ``to aliens at the time''.
(c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2027.

SEC. 3. CHILD TAX CREDIT IDENTIFICATION REQUIREMENTS.

(a) In General.--Paragraph (7) of section 24(h) of the Internal 
Revenue Code of 1986 is amended--
(1) by striking ``or, in the case of a joint return, the 
social security number of at least 1 spouse'' in subparagraph 
(A)(i) and inserting ``the social security number of both 
spouses, in the case of a joint return'', and
(2) by adding at the end the following new subparagraph:
``(C) Additional requirements for noncitizens with 
temporary work authorization.--
``(i) In general.--In the case of an 
individual with a temporary work-authorized 
social security number pursuant to section 
205(c)(2)(I) of the Social Security Act, such 
temporary work-authorized social security 
number shall be treated as a social security 
number for purposes of subparagraph (B) only if 
the Secretary confirms in coordination with the 
Secretary of Homeland Security that the 
individual has a valid temporary work 
authorization (as defined in section 
205(c)(2)(I)(iii)(II) of such Act) as of the 
date of filing the return for the taxable year.
``(ii) Documentation.--The Secretary, in 
consultation with the Secretary of Homeland 
Security, shall prescribe the form and manner 
of documentation required to be provided for 
purposes of clause (i).''.
(b) Penalty.--
(1) In general.--Part II of subchapter A of chapter 68 of 
the Internal Revenue Code of 1986 is amended by inserting after 
section 6663 the following new section:

``SEC. 6663A. IMPOSITION OF PENALTY FOR INVALID WORK AUTHORIZATION FOR 
PURPOSES OF CHILD TAX CREDIT.

``(a) Imposition of Penalty.--If any claim of credit under section 
24 on a return is due to fraud relating to an expired or invalid 
temporary work authorization (as defined in section 
205(c)(2)(I)(iii)(II) of the Social Security Act), there shall be added 
to the tax an amount equal to the greater of--
``(1) the amount of the credit so claimed, or
``(2) $5,000.
``(b) Reasonable Cause Exception.--No penalty shall be imposed 
under subsection (a) if it is shown that there was a reasonable cause 
for the taxpayer's claim of credit and the taxpayer acted in good faith 
with respect to such credit.''.
(2) Clerical amendment.--The table of sections for part II 
of subchapter A of chapter 68 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 
6663 the following new item:

``Sec. 6663A. Imposition of penalty for invalid work authorization for 
purposes of child tax credit.''.
(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2026.

SEC. 4. EARNED INCOME CREDIT IDENTIFICATION REQUIREMENTS.

(a) In General.--Subsection (m) of section 32 of the Internal 
Revenue Code of 1986 is amended--
(1) by striking ``clause (II) (or that portion of clause 
(III) that relates to clause (II)) of section 205(c)(2)(B)(i) 
of the Social Security Act'' and inserting ``subclause (II) (or 
that portion of subclause (III) that relates to subclause (II)) 
of section 205(c)(2)(B)(i) of the Social Security Act, or any 
other social security number which does not indicate that the 
individual to whom the number is issued is authorized to work 
in the United States'',
(2) by striking ``Numbers.--Solely'' and inserting 
``Numbers.--
``(1) In general.--Solely'', and
(3) by adding at the end the following new paragraph:
``(2) Additional requirements for noncitizens with 
temporary work authorization.--
``(A) In general.--In the case of an individual 
with a temporary work-authorized social security number 
pursuant to section 205(c)(2)(I) of the Social Security 
Act, such individual shall not be treated as an 
eligible individual or a qualifying child for purposes 
of this section unless the Secretary confirms in 
coordination with the Secretary of Homeland Security 
that the individual has a valid temporary work 
authorization (as defined in section 
205(c)(2)(I)(iii)(II) of such Act) as of the date of 
filing the return for the taxable year.
``(B) Documentation.--The Secretary, in 
consultation with the Secretary of Homeland Security, 
shall prescribe the form and manner of documentation 
required to be provided for purposes of subparagraph 
(A).''.
(b) Penalty.--Section 6663A of the Internal Revenue Code of 1986, 
as added by section 3, is amended--
(1) by striking ``section 24'' in subsection (a) and 
inserting ``section 24 or 32'',
(2) by striking ``child tax'' in the heading and inserting 
``child or earned income'', and
(3) by adding at the end the following new subsection:
``(c) Penalties To Be Aggregated.--In the case of penalties imposed 
under subsection (a) with respect to more than 1 credit described in 
such subsection, the amount added to the tax pursuant to this section 
shall be sum of all such penalties.''.
(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2026.

SEC. 5. SAVERS CREDIT.

(a) In General.--Section 25B of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
``(g) Identification Requirement.--
``(1) In general.--No credit shall be allowed under 
subsection (a) with respect to an eligible individual unless 
the individual includes such individual's social security 
number on the return of tax for the taxable year.
``(2) Social security number defined.--For purposes of this 
subsection, the term `social security number' has the meaning 
given such term in section 24(h)(7).''.
(b) Penalty.--Section 6663A of the Internal Revenue Code of 1986, 
as added and amended by this Act, is further amended--
(1) by striking ``section 24 or 32'' in subsection (a) and 
inserting ``section 24, 25B, or 32'', and
(2) by striking ``child or earned income credit'' in the 
heading and inserting ``certain credits''.
(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2026.

SEC. 6. SAVER'S MATCH.

(a) In General.--Subsection (c) of section 6433 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
``(4) Identification requirement.--
``(A) In general.--An individual shall not be 
treated as an eligible individual unless the individual 
includes such individual's social security number on 
the return of tax for the taxable year.
``(B) Social security number defined.--For purposes 
of this subsection, the term `social security number' 
has the meaning given such term in section 24(h)(7).''.
(b) Penalty.--Section 6663A of the Internal Revenue Code of 1986, 
as added and amended by this Act, is further amended by inserting ``, 
or of a matching contribution under section 6433,'' after ``32''.
(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2026.

SEC. 7. PENALTY FOR INVALID WORK AUTHORIZATION FOR PURPOSES OF AMERICAN 
OPPORTUNITY AND LIFETIME LEARNING CREDITS.

(a) In General.--Section 6663A of the Internal Revenue Code of 
1986, as added and amended by this Act, is further amended by inserting 
``, 25A'' after ``24''.
(b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2026.

SEC. 8. MATH ERROR AUTHORITY.

(a) Earned Income Credit.--Subparagraph (F) of section 6213(g)(2) 
of the Internal Revenue Code of 1986 is amended by striking ``taxpayer 
identification number'' and inserting ``social security number''.
(b) Child Tax Credit.--
(1) In general.--Subparagraph (I) of section 6213(g)(2) of 
the Internal Revenue Code of 1986 is amended by striking 
``TIN'' and inserting ``social security number''.
(2) Age and credit determinations.--Subparagraph (L) of 
section 6213(g)(2) of such Code is amended--
(A) by striking ``a TIN'' and inserting ``a TIN or 
social security number, as applicable,'', and
(B) by striking ``such TIN'' both places it appears 
and inserting ``such TIN or social security number''.
(c) Savers Credit.--Section 6213(g) of such Code is amended by 
striking ``and'' at the end of subparagraph (Z), by striking the period 
at the end of subparagraph (AA) and inserting ``, and'', and by 
inserting after subparagraph (AA) the following new subparagraph:
``(BB) an omission of a correct social security 
number required under section 25B(g) (relating to 
savers credit).''.
(d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2026.
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