Contributors: Ramona Wolf, Jenny Batista, and Zoe Yousaitis
In high-turnover sectors such as hospitality, agriculture and construction — where I-9 documentation is frequent — the stakes are higher than ever, especially given recent deportations. Internally auditing I-9 forms is becoming increasingly important, shifting from a check-the-box formality to a strategic necessity.
What Is an I-9 Audit?
An I-9 audit is an internal review of the completion of Form I-9, Employment Eligibility Verification, which verifies the identity and employment authorization of every employee hired by U.S. employers, regardless of the size of the organization. Employers are legally required to complete and retain this form for each employee.
While these internal audits are not legally required, they help ensure that these forms are properly completed, retained, stored and updated in accordance with federal law. If there are errors, employers can correct them before a federal audit occurs.
What Changed in 2025?
Several developments have converged to make I-9 audit completion a top priority in 2025 and 2026.
New Form I-9 Released
In January 2025, U.S. Citizenship and Immigration Services (USCIS) introduced a minor revision to Form I-9 (08/01/2023) — the only currently valid form — with updated instructions and document descriptions. Forms with the August 1, 2023, revision will either remain valid until July 31, 2026, or May 31, 2027.
By August 1, 2026, employers must use only the Form I-9 with the May 31, 2027, expiration date. Switching to the new I-9 form now is recommended to ensure compliance with this particular requirement.
Increased ICE Enforcement
Immigration and Customs Enforcement (ICE) has ramped up workplace inspections and audits by hiring over 12,000 new officers and agents in 2025 to carry out arrests, investigations and removals. Employers now face unannounced raids and three-day deadlines to produce I-9 documentation upon receiving a Notice of Inspection (NOI) from ICE.
Steep Penalties
Fines for paperwork violations range from $288 to $2,789 per infraction. Fines can range from $698 to $27,000 per worker for repeat offenses or knowingly hiring unauthorized workers.
AI-powered Scrutiny
ICE’s Homeland Security Investigations (HSI) unit is using advanced analytics and AI for both electronic and paper I-9 systems to detect discrepancies, making even minor clerical errors a potential liability.
Recent client examples where Cherry Bekaert assisted with a Form I-9 Audit reveal how quickly small errors can translate into significant financial exposure.
Client I-9 Audit Findings and Estimated Financial Exposure
| Employer Size (Employees) | I-9s Completed Incorrectly | Estimated Noncompliant Forms | Estimated Minimum Fine Exposure |
| 1,000 employees | 95% | 950 | $275,000 |
| 600 employees | 50% | 300 | $87,000 |
| 200 employees | 35% | 70 | $21,000 |
| 195 employees | 43% | 84 | $24,192 |
Based on recent I-9 audits conducted by Cherry Bekaert. Actual penalties may vary based on enforcement discretion and violation type.
What Triggers an I-9 Audit?
I-9 audits are often triggered by data signals rather than direct enforcement actions. However, tips or complaints from current and former employees, applicants, competitors, or even the media and public can prompt ICE scrutiny, as can broader government investigations related to wages, safety or affiliated businesses.
Increasingly, audits are initiated through data mismatches, irregular E‑Verify activity or inconsistencies identified through ICE’s use of advanced analytics and AI tools. While certain industries, geographic locations and companies with prior audit data are more frequently targeted, ICE also conducts random compliance checks — although less common — meaning any employer can be selected at any time.
Because many audit triggers are automated, data‑driven or outside an employer’s control, proactive I‑9 audits have become a critical risk‑management tool, especially considering the three-day ICE notice, rather than a reactive compliance exercise.
Benefits of Completing I-9 Audits
Conducting regular I-9 audits offers multiple advantages:
- Avoid Legal and Financial Risks: Catching and correcting errors before an ICE inspection can save thousands of dollars in fines.
- Demonstrate Good Faith Compliance: A history of proactive audits may reduce penalties if violations are found.
- Streamlined Human Resources (HR) Operations: Helps ensure that all employee records are accurate, complete and easily accessible.
- Protect Organization Reputation: Avoids publicized enforcement actions to help maintain employee and customer trust.
Your Trusted Advisor for I-9 Support and Compliance
For employers who operate in high-turnover industries, haven’t reviewed I-9s recently, or have grown through mergers or acquisitions, and therefore need to document several “new hires,” Cherry Bekaert’s HR Consulting Services professionals can help in the following ways:
- Review, conduct and correct errors, allowing your HR staff to remain dedicated to their daily operational duties.
- Train your HR staff on I-9 terminology, policy and compliance protocols.
- Check electronic systems so they meet Department of Homeland Security (DHS) I-9 security and retention standards.
- Establish retention and destruction policies to maintain compliance with governmental regulations.
- Develop compliance protocols to handle immigration (ICE) inspections.
Proactive support can make the difference between manageable corrections and costly penalties.
