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.