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ICE Audit Fines Explained | I-9 Compliance Guide

ICE Audits
Risk Management

ICE Audit Fines Explained: How Penalties Work (and How to Reduce Them)

An unexpected ICE audit can leave any business scrambling. When auditors find errors or violations in your I-9 forms, hefty fines usually follow—sometimes reaching millions of dollars. But how exactly are ICE audit fines calculated, and what can you do to reduce the penalty? This guide explains what to expect after an ICE audit and how a strong compliance strategy can protect your business.

What is an ICE Audit?

An ICE audit is a government inspection of your company’s Form I-9 records to verify that every employee is legally authorized to work in the United States. Employers typically receive a Notice of Inspection (NOI) giving just three business days to produce I-9 documentation. If errors or unauthorized hires are found, fines and other penalties may follow.

How does ICE Calculate Fines After An Audit?

ICE uses two main fine schedules:

  • Unauthorized Employment Violations: Based on the number of unauthorized workers hired and previous offenses.
  • Substantive or Technical Violations: Based on the percentage of errors found in your total workforce I-9s.

The amounts from these schedules are combined to determine your base fine.

Related: Use our I-9 Audit Risk Calculator for a free report on your potential fine

The Enhancement Matrix: Why ICE Fines Appear Arbitrary

After calculating the base fine, ICE agents apply the Enhancement Matrix, which can adjust penalties by up to ±25%. Factors include:

  1. Size of your business
  2. History of compliance or violations
  3. Evidence of bad faith or intent
  4. Seriousness of the violations
  5. Whether unauthorized workers were involved

This discretion is where your company can make a difference—even after the audit has started.

Reducing Your ICE Audit Fine

If you can demonstrate that you’re serious about fixing compliance gaps, ICE agents may apply mitigating factors to lower fines. Working with i9 Intelligence during or after an audit shows you’re taking immediate corrective action. We help businesses:

  • Correct errors quickly and accurately
  • Implement long-term compliance processes
  • Prepare for future inspections and avoid repeat violations

How Much are ICE Fines in 2025?

In 2025, ICE fines for I-9 violations range from hundreds to tens of thousands of dollars per violation, depending on the severity and repeat offenses. Multi-location employers are particularly at risk of large cumulative penalties.

Related: I-9 Penalties 2025: New Fines & Employer Risks

Get Help with ICE Audits and Fines

An ICE audit doesn’t have to mean devastating fines for your business. With expert guidance and digital I-9 solutions, you can regain control of your compliance process.

Request a Free Compliance Consultation to see how we can help reduce risk and protect your business.