article: 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 INDIVIDUALS 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 confidentiality and disclosure of returns and return information) is amended by adding at the end the following new paragraph: ``(9) Disclosure to secretary of homeland 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, 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 employee.--Whenever the Secretary sends a notice 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 paragraph for contesting such determination. ``(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 employee 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, during such 30-day period, the employee provides the employer with information substantiating such employee's claimed authorization to be employed in the United States, the employer shall, in such form and manner as the Secretary shall prescribe, provide to the Secretary-- ``(I) the employee's name, address, and taxpayer identification number, ``(II) the employer's name, address, telephone number, and employer identification number, and ``(III) the information provided by the employee to the employer substantiating such employee's authorization 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 electronically notify the Secretary, and shall notify the employer and employee in writing, as to whether the employee is authorized to be employed in the United States. ``(E) Suspension of obligation to terminate employment until response received.-- ``(i) In general.--Except as provided 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 suspended until the employer receives the notice described in subparagraph (D)(ii). ``(ii) Timely response not received.--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 violation of the immigration and nationality act.-- ``(i) In general.--A rebuttable presumption is created that the employer has violated section 274A(a)(1)(A) of the Immigration and Nationality Act if-- ``(I) the employer employs an individual with respect to whom a notice is received under subparagraph (B) after the 30 days described in such subparagraph, ``(II) the employer fails to notify the Secretary as required by subparagraph (E)(ii) and employs such individual, or ``(III) the employer refers the individual for employment after receiving 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 employer is notified by the Secretary of Homeland Security that such individual 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 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 provided by the Secretary or the Secretary of Homeland Security with respect to any individual'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 purposes of this section. ``(iii) Last known address of employee.-- Any notice required to be provided to an employee under this section shall be sufficient if mailed to the employee at the last known address of the employee.''. (b) Conforming Amendment.--Paragraph (4) of section 6103(p) of such Code is amended by striking ``(5) 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.
summary: Stop the Misuse of ITINs Act of 2007 - Amends the Internal Revenue Code to require the Secretary of the Treasury to: (1) notify the Secretary of Homeland Security of any employer tax return which shows wages paid to an employee who is not authorized to be employed in the United States; and (2) provide a written notice to the employer and employee involved that such employment is illegal and must be terminated within 30 days after the date of said notice. Allows any employee who receives a notice to contest such notice and provide documentation substantiating such employee's claimed authorization to work in the United States.