Recovery of Stolen Checks Act
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Would require the Treasury Department to create a direct-deposit option for taxpayers whose federal tax refund checks were lost or stolen — replacing the current default of issuing another paper check. The change would apply to taxpayers already eligible for a replacement refund.
What this bill would do
What it would do
The bill would amend Section 6402 of the Internal Revenue Code of 1986 to direct the Secretary of the Treasury to establish procedures, by regulation, allowing eligible taxpayers to choose direct deposit instead of a paper check when receiving a replacement for a lost or stolen federal tax refund check. Treasury would have six months from enactment to issue the implementing regulations.
The bill would not change who qualifies for a replacement refund — it would only add an electronic payment option for those already eligible. Taxpayers who prefer a replacement paper check could still receive one; the direct-deposit route would be elective, not mandatory.
Key provisions
- 1Would require the Secretary of the Treasury to prescribe regulations establishing procedures allowing taxpayers to elect direct deposit instead of a paper check for replacement of a lost or stolen refund check.
- 2Would set a deadline of six months after enactment for Treasury to issue the implementing regulations.
Who would be affected
Individual and other taxpayers who were originally issued a paper federal tax refund check that was lost or stolen and who are eligible to receive a replacement. The Department of the Treasury and the Internal Revenue Service would be directed to write regulations and build the administrative procedures to carry out the election process.
Why it matters
Taxpayers waiting for a replacement refund check after theft or loss currently must wait again for another paper check, prolonging their access to money they are owed. A direct-deposit option would let eligible taxpayers receive replacement funds faster and more securely, reducing exposure to repeat theft or mail delays.
What would change
Changes to existing law
Amends Internal Revenue Code of 1986 (Sec. 2)
Adds new subsection 6402(o) directing Treasury to establish a direct-deposit election for replacement of lost or stolen paper refund checks.
Agencies directed to act
Effective dates
- Amendment to the Internal Revenue Code takes effect
- Deadline for Treasury to prescribe implementing regulations
Funding and costs
Congressional Budget Office estimate
CBO estimates that H.R. 1155 would have no significant effect on the federal budget.
H.R. 1155, the Recovery of Stolen Checks Act, would allow taxpayers whose paper tax refund checks have been stolen to choose to receive a replacement refund by direct deposit instead of another paper check. CBO found that the bill would have no significant budgetary effect, as any administrative costs to implement the option would be negligible. The estimate did not identify any intergovernmental or private-sector mandates as defined under the Unfunded Mandates Reform Act.
How implementation would work
Treasury's Secretary would have six months from enactment to issue regulations establishing the election procedures. In practice, the IRS would need to create a mechanism for taxpayers to designate a bank account for direct deposit when requesting a replacement refund. The amendment takes effect on the date of enactment, but taxpayers could not exercise the election until the regulations are in place.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Finance.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill requires the Department of the Treasury to establish procedures that allow an eligible taxpayer to elect to receive by direct deposit a replacement of a federal tax refund amount that was originally issued as a paper check and was lost or stolen. (Currently, taxpayers eligible to receive a replacement of a lost or stolen federal tax refund check are generally issued another paper check.)
Legislative subjects
Bank accounts, deposits, capital; Tax administration and collection, taxpayers; Taxation
Committee report
H. Rept. 119-41