Bill
HR 1155
Allows eligible taxpayers whose IRS replacement refund checks were lost or stolen to elect direct deposit for the replacement refund instead of a paper check.
Note on a discrepancy
- The bill information you provided lists H.R. 1155 as a congratulatory resolution for “Daniel Dominguez of El Paso,” but the Committee report and bill text you supplied are for H.R. 1155, the “Recovery of Stolen Checks Act.” This summary covers the substantive bill in the Committee report (Recovery of Stolen Checks Act) and its legislative history as provided.
Overview
- Title: Recovery of Stolen Checks Act
- Bill: H.R. 1155 (as reported, H. Rept. 119-41)
- Purpose: Require the Internal Revenue Service (IRS) to allow eligible taxpayers to elect direct deposit for replacement tax refund checks that were originally issued by paper check but lost or stolen.
- Main legal change: Adds a new subsection to section 6402 of the Internal Revenue Code (new 6402(o)).
- Effective date: On the date of enactment; regulations required within six months of enactment.
Key provisions
- New statutory authority (IRC §6402(o)): The Secretary of the Treasury must prescribe regulations (within 6 months of enactment) establishing procedures that permit taxpayers—who would otherwise receive a replacement paper check for a lost or stolen refund check—to elect to receive the replacement amount by direct deposit instead of by paper check.
- Applies only where an overpayment refund was originally issued as a paper check and the check was lost or stolen and a replacement would otherwise be issued as a paper check.
- No change to other refund-issuance rules beyond providing the election and requiring implementing procedures.
Background and rationale
- Rising check fraud and mail theft have increased cases of stolen IRS refund checks and, in some cases, theft of replacement checks.
- Cited evidence: FinCEN reported over 680,000 Bank Secrecy Act filings related to check fraud in 2022 (nearly double the prior year).
- The committee determined the IRS currently lacks the established procedures to offer direct deposit for replacement checks and that the bill would help reduce fraud and taxpayer burden.
Who is affected
- Primary: Individual taxpayers (and other taxpayers) who were mailed an IRS refund by paper check that is later lost or stolen and who would otherwise be eligible for a replacement paper check.
- Secondary: IRS operations—requires new procedures, systems, and regulatory guidance; possible interactions with fraud-detection and taxpayer identity-verification processes.
Procedural and timeline aspects
- Introduced in House: February 10, 2025.
- Referred to House Ways & Means; reported (amended) as H. Rept. 119-41 on March 27, 2025.
- Passed House (suspension of rules) March 31, 2025 (voice vote).
- Received in Senate and referred to Senate Finance: April 1, 2025.
- Committee required to issue implementing regulations within 6 months of enactment; statutory change effective upon enactment.
Legislative sponsors and related bills
- Sponsors (as listed): Nicole Malliotakis (primary), with Darrell Issa, Terri A. Sewell, and David Kustoff as cosponsors.
- Related/companion bill: S. 2449.
Potential effects and implementation considerations
- Expected benefits: Reduced instances of replacement-check theft, faster/safer receipt of refunds by victims of stolen checks, reduced taxpayer burden from repeated refund tracing.
- Administrative needs: IRS must develop secure processes for taxpayers to provide direct-deposit routing/account information for replacement refunds and ensure identity verification and anti-fraud safeguards.
- Budgetary aspects: Committee report notes a CBO cost estimate was prepared; the bill mainly requires administrative implementation rather than creating direct new entitlements.
If you want, I can:
- Extract and present the exact proposed statutory language added to IRC §6402.
- Draft a one-paragraph summary suitable for a press release or constituent notice.
Compiled from official sources — confirm details with the bill’s official record.
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