Recovery of Stolen Checks Act
The Recovery of Stolen Checks Act would amend the Internal Revenue Code to give taxpayers who are eligible to receive a replacement tax refund by paper check the option to receive that replacement amount through direct deposit instead. Specifically, the bill adds a new election (within Section 6402) allowing eligible individuals to choose direct deposit for replacement refunds rather than receiving a new paper check. The Secretary of the Treasury would issue regulations within six months of enactment to establish how this election would work. The change takes effect on the date of enactment. In short, if a taxpayer’s prior paper check refund was lost or stolen and a replacement check would ordinarily be issued, they could elect to have the replacement amount deposited directly into a bank or eligible financial account instead of receiving another paper check.
Key Points
- 1Adds a new election, placed at the end of Section 6402, to allow replacement tax refunds to be received by direct deposit rather than by paper check.
- 2Applies specifically to replacement refunds that were originally issued as paper checks due to loss or theft of the prior check.
- 3Requires the Secretary to issue regulations within six months of enactment to establish procedures for making this direct-deposit election.
- 4The amendment becomes effective on the date of enactment (immediate effect).
- 5The option is an elective choice for eligible taxpayers, potentially reducing risk from lost/stolen checks and speeding access to funds.