Recovery of Stolen Checks Act
- Bill Number
- H.R. 1155
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Passed House
- Latest Action
- 2025-04-01: Received in the Senate and Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-07-10T16:53:23Z
AI-Generated Summary
Purpose
The "Recovery of Stolen Checks Act" (H.R. 1155) aims to give taxpayers a safer and more convenient option for receiving replacement refunds when their original paper checks from the IRS are lost or stolen. It promotes electronic payments to reduce risks like theft and delays associated with paper checks.
Key Provisions
- Election for Direct Deposit: Taxpayers who qualify for a replacement refund (due to a lost or stolen original paper check for an overpaid tax) can choose to receive the funds via direct deposit instead of another paper check.
- Regulatory Timeline: The Secretary of the Treasury (overseeing the IRS) must issue rules within 6 months of the bill's enactment to set up procedures for this election.
- Scope: This applies only to replacement refunds for previously issued paper checks related to tax overpayments.
Significant Changes to Existing Law
- Amends Section 6402 of the Internal Revenue Code of 1986 by adding a new subsection (o), which introduces the option for electronic direct deposit of replacement refunds.
- Previously, replacements for lost or stolen checks were typically issued as new paper checks, with no standard electronic alternative specified in the law.
Potential Impacts
- On Citizens: Taxpayers benefit from quicker access to funds (direct deposits are faster than mailing checks) and lower risk of theft, potentially reducing financial stress from delayed or stolen refunds.
- On Government Agencies: The IRS could see reduced administrative costs and workload from handling fewer paper checks, as well as fewer fraud investigations related to stolen checks. It encourages a shift toward digital payments, aligning with broader government efforts to modernize tax processes.
- On International Relations: No direct impacts, as the bill focuses solely on domestic U.S. tax refunds.
Main Stakeholders Affected
- Taxpayers: Primarily individuals or entities who receive IRS refunds and experience lost or stolen checks; they gain flexibility in payment methods.
- Internal Revenue Service (IRS): Responsible for implementing the new procedures, which may streamline operations but require initial setup costs for regulations and system updates.
- Financial Institutions: Banks and other entities handling direct deposits could see a slight increase in electronic refund processing.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens consumer protections by addressing vulnerabilities in paper-based refund systems, potentially reducing disputes over stolen checks under existing tax laws. No conflicts with broader tax code provisions.
- Constitutional: No significant issues; the bill operates within Congress's authority to regulate taxation and federal spending under Article I of the U.S. Constitution.
- Political: Supports bipartisan goals of efficiency and fraud prevention in government services, with minimal controversy as it builds on existing electronic filing trends without imposing new taxes or mandates. It may encourage further digitization of federal payments.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Malliotakis, Nicole [R-NY-11]
Cosponsors (3)
Rep. Sewell, Terri A. [D-AL-7], Rep. Kustoff, David [R-TN-8], Rep. Issa, Darrell [R-CA-48]
Recent Actions
- 2025-04-01: Received in the Senate and Read twice and referred to the Committee on Finance.
- 2025-03-31: Motion to reconsider laid on the table Agreed to without objection.
- 2025-03-31: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H1351)
- 2025-03-31: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
- 2025-03-31: DEBATE - The House proceeded with forty minutes of debate on H.R. 1155.
- 2025-03-31: Considered under suspension of the rules. (consideration: CR H1351-1353)
- 2025-03-31: Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
- 2025-03-27: Placed on the Union Calendar, Calendar No. 28.
- 2025-03-27: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-41.
- 2025-03-27: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-41.
- 2025-02-12: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 41 - 0.
- 2025-02-12: Committee Consideration and Mark-up Session Held
- 2025-02-10: Referred to the House Committee on Ways and Means.
- 2025-02-10: Introduced in House
- 2025-02-10: Introduced in House
Bill Versions
- Recovery of Stolen Checks Act — issued 2025-03-31 — PDF (4 pages)
- Recovery of Stolen Checks Act — issued 2025-02-10 — PDF (2 pages)
- Recovery of Stolen Checks Act — issued 2025-04-01 — PDF (3 pages)
- Recovery of Stolen Checks Act — issued 2025-03-27 — PDF (4 pages)