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. This election would be for direct deposit in lieu of a replacement paper check. The Secretary of the Treasury is required to prescribe regulations to establish procedures for this election within six months of the Act's enactment.
Expected Effects
The primary effect of this bill is to provide taxpayers with a more secure and efficient method for receiving replacement tax refunds. It reduces the risk of further loss or theft associated with paper checks. The bill mandates the IRS to establish the necessary procedures for electronic replacement refunds.
Potential Benefits
- Provides a more secure method for taxpayers to receive replacement refunds.
- Reduces the risk of stolen or lost replacement checks.
- Potentially speeds up the refund process for affected taxpayers.
- May reduce administrative costs associated with issuing and tracking paper checks.
- Offers taxpayers greater convenience and control over their refunds.
Potential Disadvantages
- Requires the IRS to develop and implement new regulations and systems, potentially incurring initial costs.
- Some taxpayers may not have access to direct deposit or may prefer paper checks.
- There could be a learning curve for taxpayers and IRS staff adapting to the new procedures.
- Potential for increased risk of phishing or fraud if electronic systems are not adequately secured.
- The six-month implementation timeframe may be challenging for the IRS to meet.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to improve the efficiency and security of tax refunds. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, and this bill relates to the administration of tax refunds. There are no apparent conflicts with 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).