WASHINGTON – U.S. Rep. Terri Sewell’s legislation that will make it easier for taxpayers who have their IRS checks stolen to get a replacement passed the House last week.
The Recovery of Stolen Checks Act passed on a voice vote. The bipartisan bill will allow taxpayers whose IRS checks have been stolen or lost to get a replacement via direct deposit instead of waiting for a replacement check. Previously, IRS policies prevented the use of direct deposit to replace stolen checks.
“The bill will take a critical step towards combatting financial fraud and protecting hard-(earning) Americans from falling victim to check theft,” Sewell said on the House floor.
As a member of the House Ways and Means Committee, Sewell said the legislation will also strengthen law enforcement’s ability to prosecute criminals who steal people’s checks.
“For many of my constituents, a lost or stolen check is more than just an inconvenience,” Sewell said in a statement. “It can cause real financial hardship. That’s why I’m thrilled that the House has passed our legislation to allow taxpayers who are victims of lost or stolen checks to receive replacements via direct deposit.”
Rep. Nicole Malliotakis, R-NY, sponsored the bill, and Sewell and Rep. David Kustoff, R-TN, co-led it. Sewell said it was great to see lawmakers from both sides of the aisle address the issue.
“Check fraud is a growing problem, but today we in a bipartisan way at the Ways and Means Committee, are finally taking commonsense decisive action,” Sewell said.
About 40,000 IRS checks were stolen in 2024, compared to 100 in 2022, according to Sewell’s office.