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 check was lost or stolen. The bill directs the Secretary of the Treasury to establish procedures for this electronic option within six months of the Act's enactment. This aims to provide a more secure and efficient method for taxpayers to receive replacement refunds.
Expected Effects
The primary effect will be to provide taxpayers with an alternative to receiving replacement refund checks via mail. Taxpayers will have the option to receive these refunds via direct deposit. This should reduce the risk of further loss or theft associated with paper checks.
Potential Benefits
- Provides a more secure method for receiving replacement refunds, reducing the risk of theft or loss.
- Offers taxpayers greater convenience by allowing direct deposit instead of waiting for a paper check.
- Potentially speeds up the refund process, as electronic transfers are generally faster than mail delivery.
- Reduces administrative burden and costs associated with printing and mailing paper checks.
- Enhances taxpayer satisfaction by providing a modern and efficient service.
Potential Disadvantages
- Requires the IRS to develop and implement new regulations and procedures, potentially incurring initial costs.
- May exclude taxpayers who lack bank accounts or access to electronic banking services, creating a digital divide.
- Could pose security risks if the electronic system is not adequately protected from cyber threats.
- May require taxpayer education and outreach to ensure awareness of the new option.
- Potential for errors or delays during the initial implementation phase as the IRS adapts to the new system.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution, as it aims to improve the efficiency and security of tax refunds. Article I, Section 8 grants Congress the power to lay and collect taxes, and this bill relates to the administration of tax refunds. The bill does not appear to infringe upon any specific constitutional rights or limitations.
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).