text: 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.
target: 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.
feat_title: To amend the Internal Revenue Code of 1986 to require the Secretary of the Treasury to notify the Secretary of Homeland Security of employer returns showing the employment of individuals not authorized to be employed in the United States and to notify the employers that they must terminate the employment of those employees, to provide an opportunity for those employees to contest the information, and for other purposes.