H.R.1155 - Recovery of Stolen Checks Act (119th Congress)
Summary
H.R. 1155, the "Recovery of Stolen Checks Act," amends the Internal Revenue Code of 1986 to allow taxpayers to elect to receive replacement refunds electronically if their original refund checks are lost or stolen. This act directs the Secretary of the Treasury to establish procedures for direct deposit of these replacement refunds within six months of the act's enactment.
The bill aims to streamline the process of refund recovery and reduce reliance on paper checks. It focuses on improving efficiency and convenience for taxpayers who have experienced the loss or theft of their refund checks.
The Act was passed by the House of Representatives on March 31, 2025.
Expected Effects
The primary effect of this act will be to provide taxpayers with an option to receive replacement tax refunds via direct deposit instead of paper checks. This should reduce the time it takes to receive replacement refunds and minimize the risk of further loss or theft.
It will also require the IRS to develop and implement new regulations and procedures to accommodate this electronic option. This may involve updates to existing systems and training for IRS staff.
Ultimately, the goal is to enhance taxpayer service and improve the efficiency of the refund process.
Potential Benefits
- Reduced risk of loss or theft: Direct deposit eliminates the risk of replacement checks being lost or stolen in the mail.
- Faster refund processing: Electronic transfers are generally faster than mailing and processing paper checks.
- Increased convenience: Taxpayers can avoid the hassle of cashing or depositing a physical check.
- Improved efficiency for the IRS: Electronic transfers can reduce administrative costs associated with printing and mailing paper checks.
- Modernization of tax refund processes: This aligns with the trend of digitizing government services.
Most Benefited Areas:
Potential Disadvantages
- Potential implementation challenges: The IRS may face challenges in developing and implementing the necessary systems and procedures within the six-month timeframe.
- Increased risk of fraud: Direct deposit could potentially increase the risk of fraudulent claims if security measures are not robust.
- Digital divide: Taxpayers without bank accounts or access to electronic services may not be able to benefit from this option.
- Privacy concerns: Some taxpayers may have concerns about providing their bank account information to the IRS.
- Cost of implementation: The IRS will incur costs in developing and implementing the new system.
Constitutional Alignment
This act appears to align with the general welfare clause of the Constitution, as it aims to improve the efficiency and convenience of tax refund processes for the American people. The Constitution grants Congress the power to lay and collect taxes, and this act relates to the administration of those taxes.
Specifically, the Act amends Section 6402 of the Internal Revenue Code of 1986, which falls under the authority granted to Congress by Article I, Section 8, Clause 1 of the Constitution (the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States).
There are no apparent conflicts with any specific constitutional provisions or amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).