S. 2974

119 S2974 IS: Status Eligibility Confirmation and Updated Requirements for Earned Benefits Act of 2025
 U.S. Senate
 2025-10-03
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 2974  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.
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  .
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.
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:
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.
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.
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.
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.
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.
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.