H.R.1155 - Recovery of Stolen Checks Act (119th Congress)
Summary
H.R.1155, the Recovery of Stolen Checks Act, aims to amend the Internal Revenue Code of 1986. It allows 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 enactment.
Expected Effects
This bill will provide taxpayers with a more secure and efficient method for receiving replacement tax refunds. Taxpayers who have experienced the inconvenience and potential financial loss of a stolen or lost refund check will have the option to receive their replacement refund via direct deposit. This reduces the risk of further theft or loss associated with paper checks.
Potential Benefits
- Provides a more secure method for taxpayers to receive replacement refunds, reducing the risk of theft or loss.
- Offers a more efficient process compared to waiting for a replacement paper check.
- Reduces administrative burden and costs associated with issuing and processing paper checks.
- Enhances convenience for taxpayers who prefer electronic transactions.
- Potentially speeds up the refund process, getting money to taxpayers faster.
Potential Disadvantages
- May disproportionately benefit those with bank accounts and internet access, potentially excluding some low-income individuals.
- Requires the IRS to develop and implement new procedures, which could involve initial costs and challenges.
- Could create confusion if the implementation is not well-communicated to taxpayers.
- Potential for increased risk of phishing scams targeting taxpayers seeking electronic refunds.
- Some taxpayers may still prefer paper checks due to familiarity or lack of trust in electronic systems.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve the efficiency and security of tax refunds. Specifically, it falls under Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1. The establishment of procedures for electronic refunds is within the scope of Congress's authority to manage the nation's finances.
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).