How to audit Form I-9s and maintain compliance in 2026

With the beginning of a new year, now is the perfect time for HR to conduct a proactive internal audit of all Forms I-9. Though it isn’t required by law, starting the year with this review ensures compliance, helps manage documentation, and prepares staff and systems for the year. It also minimizes the risk of penalties following a government inspection (I-9 audit). This article outlines best practices for conducting an beginning-of-year internal audit and provides tips for preparing systems and staff for 2026.

Conducting a preemptive internal audit

To ensure compliance and thereby avoid government penalties, HR should review every active employee’s Form I-9 for accuracy, focusing on the most common errors.

Timeliness

Verify that Section 2 was completed by the employer within the mandatory 3 business days of the employee’s start date.

Completeness

Check for missing dates, signatures, and essential document information (document title, issuing authority, number, and expiration date) in both Section 1 and
Section 2.

Reverification

Confirm that employees with expiring work authorization (recorded in Supplement B (formerly Section 3)) were reverified before their expiration date.

Correcting errors

For employer errors (Section 2/Supplement B), draw a single line through the mistake, enter the correct information, and initial and date the correction. For employee errors (Section 1), the employee must personally make the correction and initial and date it. Employers may not conceal any changes made on the form, such as by erasing text, using correction fluid, or backdating.

Manage retention and storage

The beginning of the year is also an ideal time to manage the required purge cycle of terminated employee files.

• Purging old forms: Forms I-9 must be retained for either 3 years after the date of hire or 1 year after the date of termination, whichever is later. Any form exceeding this limit should be shredded.
  • Note: This retention rule applies only to terminated employees; I-9 forms for current employees must be retained for the entire time they’re working for the employer.
• Secure storage: Ensure active and terminated I-9 forms are stored securely (e.g., in a locked file cabinet or secured electronic system) and kept separate from general employee personnel files to protect against potential discrimination claims.

Training and system readiness

Preparing for the year ahead also involves updating knowledge and technology, which is essential for maintaining compliance and mitigating future risk. HR should take the following steps:

• Staff training: Conduct mandatory refresher training for all hiring managers and HR personnel. Emphasize using the correct version of Form I-9 (dated 01/20/2025) and adhering strictly to anti-discrimination rules. Be clear that HR can’t specify which document an employee will present from the Form I-9 Lists of Acceptable Documents.
• System updates: E-Verify users must ensure the company’s electronic I-9 system is updated to display the latest version of the form (with the 05/31/2027 expiration date) no later than July 31, 2026. E-Verify employers must also ensure compliance with all the latest E-Verify procedures.

In conclusion

Employers and HR professionals should focus on three key areas in the new year: Audit current I-9 forms, clean up old files, and ensure teams and systems are using the newest version of Form I-9 (01/20/2025). Following these best practices will help keep the organization safe and compliant this year.

Nancy R. McDermott, JD, has more than 20 years of experience as a legal writer and editor. Before coming to BLR®, she served as editor of The Personnel Advisor, an HR employment law reference manual. She has also worked as a court watch research analyst for Texas Watch, a grassroots organization, and for the Texas Legal Services Center, conducting legal research. She earned her BA in criminal justice from the University of Texas at San Antonio and her law degree from Vermont Law School.