I-9 Audit
Why Every Employer Needs an I-9 Audit Strategy
If you employ anyone in the U.S., you’re legally required to complete and maintain Form I‑9 for each employee. That sounds simple but even small paperwork errors can result in major fines during an ICE inspection. A proactive I‑9 audit strategy helps catch issues early, prove good faith compliance, and avoid liability if ICE ever comes knocking. This guide walks you through what audits involve, how to run one, and how to prepare for the worst-case scenario: a government inspection.
Why I-9 Audits Matter
Since 1986, under the Immigration Reform and Control Act (IRCA), every U.S. employer has been required to verify both the identity and employment authorization of every new hire using Form I‑9.
Failure to comply with I‑9 requirements can result in significant civil fines, even if the mistakes were unintentional. For example:
Fines can range from $272 to $2,701 per form for paperwork errors
Knowingly employing unauthorized workers can lead to criminal penalties, ranging from $716 to $28,619 per person
ICE inspections are increasing in frequency and intensity, especially under administrations focused on worksite enforcement. When they show up with a Notice of Inspection, you get just three business days to produce I‑9s and being unprepared isn’t a defense.
But there’s another reason audits matter: prevention.
If you conduct regular internal audits, you can catch honest mistakes early and demonstrate a “good faith effort” to comply, something ICE may consider if they find issues during an official inspection.
An internal I‑9 audit is a voluntary, self-initiated review that helps catch errors and demonstrate good faith compliance. An ICE inspection, on the other hand, is a formal review initiated by the government. Both require similar documentation but the consequences and timelines differ significantly.
Pro Tip: ICE is legally required to give you three business days’ notice before an inspection but those days will fly by. If your I‑9s aren’t in order ahead of time, you’ll feel it.
How to Conduct an I‑9 Audit
Doing a self-audit may sound overwhelming, but it’s one of the smartest, most proactive steps you can take as an employer. The key is breaking it into manageable parts. Here’s how to do it step by step, using the January 20, 2025 edition of the I‑9 form (valid through May 31, 2027).
Step 1: Get Organized
Start with file structure. Set up two separate folders:
One for current employees' I‑9s
One for former employees' I‑9s
Keeping I‑9s separate from general personnel files protects privacy and makes it easier to respond to an audit or inspection.
Retention rules still apply:
Keep each I‑9 for three years after the date of hire, or one year after the employee’s termination, whichever is later.
Pro Tip: If you terminate an employee, don’t toss their I‑9 right away. Do a quick calculation:
Hired 01/01/2021
Terminated 01/01/2023
Keep until 01/01/2024 (because that’s later than 01/01/2023 + 3 years)
Step 2: Match I‑9s to Employees
This step ensures you're not missing anyone.
Review your active employee roster and make sure every person hired after November 6, 1986 has a completed Form I‑9
Cross-check names and hire dates between your payroll records and the forms
If someone is missing a form, flag it. It needs to be completed immediately (and properly annotated if late)
Step 3: Review Each Section of the I‑9 for Accuracy
Let’s go section by section, based on the 2025 version of the form:
Section 1: Employee Information and Attestation
This section must be completed by the employee on their first day of work.
What’s changed?
Checkbox 4 now reads: “An alien authorized to work” (replacing “noncitizen” from the 2023 version).
Make sure this is selected correctly, and employees understand the difference between citizenship statuses.
Common mistakes:
Missing or incorrect signature or date
Employer accidentally completes Section 1 (don’t!)
Fields left blank especially citizenship status, or the Alien Registration Number if applicable
Missing Supplement A (Preparer/Translator Certification), if applicable
If an employee doesn’t sign Section 1 and you file it anyway, you’re on the hook for that false attestation. Don't risk it.
Section 2: Employer Review and Verification
Must be completed within three business days of the employee’s start date.
Key duties:
Physically examine documents (or remotely, if using E-Verify under DHS-authorized virtual procedures)
Enter details: document title, issuing authority, number, and expiration date
Complete employer info: name, title, business address, signature, and date of hire
Document Rules:
Accept either:
One List A document (e.g., U.S. passport, green card), OR
One from List B (e.g., driver’s license) and one from List C (e.g., SSN card)
Don’t request both List A and B/C. That’s called over-documentation and it can lead to discrimination claims.
What’s new?
List B now uses the term “sex” instead of “gender,” in alignment with recent executive guidance on biological definitions.
Supplement B: Reverification and Rehires (formerly Section 3)
Supplement B replaces the old Section 3 in the 2025 edition and is used for:
Reverifying work authorization
Rehiring an employee within 3 years of the original I‑9
Documenting legal name changes
Definition: Supplement B is the section of Form I‑9 used to update or reverify work authorization for existing employees, or to log rehires and legal name changes.
Common mistakes:
Not reverifying expiring work permits (e.g., EADs)
Rechecking documents that don’t need reverification (e.g., driver’s licenses)
Forgetting to record rehire dates or name changes
Omitting Supplement B when it should be completed
Best practice: Set reminders to review work authorization 120 days before expiration.
Step 4: Use the Most Current Form
The current edition is dated 01/20/2025, valid through 05/31/2027.
Still using the 08/01/2023 version?
07/31/2026 expiration: OK through July 2026
05/31/2027 expiration: OK through May 2027
If you're using the 07/31/26 version electronically, update to the 2025 version by July 31, 2026.
Always download from uscis.gov/i-9 to ensure authenticity.
Step 5: Make Corrections, Properly
Mistakes happen. Here’s how to fix them:
One line through incorrect info
Write in the correct info nearby
Initial and date the correction
Never use white-out, scribble, or backdate
If it’s a Section 1 error, only the employee can fix it.
Step 6: Document Your Audit
Keep an internal log that includes:
Date of audit
Person conducting it
Findings and corrections
Memos explaining any issues
This record helps show ICE or DHS that you’re staying on top of compliance.
What If You Find Violations?
Take a deep breath. Then handle it step by step:
Missing I‑9s?
Have the employee complete a new I‑9 immediately
Do not backdate
Attach a memo with an explanation
Expired work authorization?
Request updated documents
Complete Supplement B for reverification
Follow up before expiration dates
Incorrect or incomplete forms?
Correct per USCIS rules
Add a memo to explain
Keep everything in your audit log
In cases of repeated or serious errors, consult your immigration attorney before submitting any changes. Early legal guidance may help mitigate exposure. Preparing for ICE Inspections (What to Expect & How to Get Ready)
So, imagine this: ICE sends you a Notice of Inspection (NOI). You’ll have three business days to respond. Sounds tight and it is.
But here’s how to be ready.
Below is your ICE Inspection Prep Checklist:
Employee Roster:
Up-to-date list of all employees, including former ones within the retention window.
(Remember: 3 years after hire or 1 year after termination—whichever is later.)
I‑9 Forms:
Ensure each includes a correct, valid edition. Outdated forms may count as technical violations.Supplement B Pages:
Have completed Supplement Bs for all reverifications, rehires, and name changes.Retention System:
Keep current vs. former employee forms organized in separate folders.Accuracy Check:
Section 1 signed/dated by the employee on day one
Section 2 completed within three business days
Supplement B used where required
Document Review:
Check every listed ID for:
Title, issuing authority, number, expiration
Legibility and authenticity
Signatures & Dates:
Match employment dates, no blanks or backdating.Audit Logs:
Show your audit history to demonstrate good faith.
What Happens During the ICE Review?
ICE officers will scrutinize each I‑9 and issue violations if they find errors.
Definition:
Technical violations = minor errors (e.g., missing initials)
Substantive violations = serious issues (e.g., missing forms, unauthorized hires)
ICE allows 10 business days to correct technical violations after an inspection, keep clean records ready so you can meet that deadline if needed.
A history of internal audits and good-faith corrections can reduce penalties, even if violations exist.
Pro Tips to Stay Ahead
Conduct internal audits at least twice a year
Always use the current Form I‑9
Maintain organized, accessible records
Train HR staff on what’s acceptable
If You Get the NOI
Don’t delay, start compiling records
Use your audit log and file structure to move fast
Flag anything concerning and notify legal
Remember, cooperation matters. A clear, documented compliance strategy could make all the difference.
Need help setting up your I‑9 system or training staff?