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Federal law preempts Alabama statute denying tax deduction for illegal alien employees
The Eleventh Circuit Court of Appeals held that the section of Alabama House Bill 56 that disallowed an employer a state tax deduction for wages and compensation paid to an alien unauthorized to work in the United States was preempted by federal immigration law (United States v. Alabama, No. 11-14532 (11th Cir. 8/20/12)). Thus, Alabama was enjoined from enforcing the provision. The court also held many other of the law’s immigration provisions to also be preempted.
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