Texas Comptroller Says Its Own Hiring Records Failed Federal I-9 Rules for Up to 20 Years. Taxpayers May Owe $5 Million

Employers must verify the identity and work authorization of new employees using federal Form I-9. Now the office that collects Texas' taxes says its own compliance failures may go back as far as 20 years.

Comptroller Don Huffines announced Friday that a performance review he ordered found what appears to be "decades of systemic failures" in the agency's employment eligibility verification and its compliance with Form I-9 rules, according to a news release from the Comptroller.

What the agency says it found

The release makes several specific claims:

• The problems may date back as far as 20 years. The agency says the full scope is still being determined.

• Based on a preliminary internal assessment, taxpayers could face about $5 million or more in federal civil penalties for failing to properly complete, verify and keep the required hiring records.

• The agency has hired independent outside legal counsel to conduct a full investigation, and it says it "will not contest legitimate penalties."

• Remediation is already underway as part of what the office calls its Taxpayer First Project.

The release does not say how many employee files were affected, whether any agency employee was found to lack work authorization, or which years or offices were involved. Those are the questions the outside investigation will need to answer, and Texans deserve those answers in writing.

Huffines ordered a comprehensive performance review when he took office in August, the release says. The office says the independent review will assess processes, identify compliance gaps and recommend corrective actions.

Huffines' charge

Huffines did not soften it. "My message to Texans never changed: audit government, expose corruption. It is your money," he said in the release. "If 90 days of auditing found this in one agency, Texans should ask what is sitting in all the others."

He went further: "This was not ignorance. The early findings suggest people inside government knew about these failures and hid them." The release does not name anyone or describe the evidence behind that statement, so for now it is an accusation, not a finding.

He also called on President Donald Trump, the Department of Homeland Security and Immigration and Customs Enforcement to audit every state and local government entity in Texas. "I invite President Trump and ICE to review the employment eligibility of every government employee in Texas," Huffines said. "The state of Texas needs to pay its fines for violating federal I-9 requirements, just like every business has to."

One standard for everyone

Huffines' best line is the simplest one. Government should be held to the same rules it enforces on everyone else. A small business owner in Lubbock or Laredo who loses track of I-9 forms faces fines. A state agency should not get a pass because the money it pays comes from taxpayers instead of its own pocket.

Proverbs 20:10 condemns dishonest weights and measures. Government should not demand careful records from businesses while neglecting its own obligations. Honest bookkeeping is not a partisan cause. It is basic stewardship.

At the same time, fairness requires care with words. An I-9 paperwork failure does not establish that an employee lacked authorization to work. The release does not identify any such employee. Huffines' allegations of concealment should be tested against documents and evidence, not treated as proven misconduct.

For a separate debate over local cooperation with federal immigration authorities, see Houston Limits ICE Calls at Traffic Stops. Whitmire Says “Elections Matter,” but State Law Has Not Changed.

The release gives no completion date for the outside investigation. The next test is whether the agency publishes its findings, documents any penalties actually assessed and explains the corrective steps.