U.S. Senators Marsha Blackburn (R-Tenn.) and Mark Warner (D-Va.) have introduced the bipartisan Recovery of Stolen Checks Act, aiming to address the problem of stolen or lost paper tax refund checks issued by the U.S. Department of Treasury. The proposed legislation would allow affected taxpayers to receive their replacement payments through electronic deposit instead of a new paper check.
Senator Blackburn commented on the need for change: “An outdated IRS policy is leaving Tennesseans vulnerable to having their tax refund checks repeatedly lost or stolen in the mail,” said Senator Blackburn. “When those refunds don’t arrive on time, it puts real strain on hardworking families. The Recovery of Stolen Checks Act would allow taxpayers to receive a direct deposit from the Treasury Department rather than another check a criminal could intercept.”
Senator Warner highlighted concerns about fraud: “With check fraud costing taxpayers hundreds of millions of dollars, it makes no sense for the federal government to keep reissuing vulnerable paper checks after they have already been stolen or gone missing,” said Senator Warner. “This bipartisan bill offers a smart, secure fix by letting taxpayers opt for direct deposit so they can get their money faster and more safely.”
The bill has support from several senators including Rick Scott (R-Fla.), Catherine Cortez Masto (D-Nev.), Jim Justice (R-W.Va.), Ron Wyden (D-Ore.), Pete Ricketts (R-Neb.), Maggie Hassan (D-N.H.), Jon Husted (R-Ohio), and Raphael Warnock (D-Ga.). It has already passed in the House, where Representatives David Kustoff (R-Tenn.), Nicole Malliotakis (R-N.Y.), and Terri Sewell (D-Ala.) sponsored it.
Recent incidents underscore growing concerns over tax refund theft. In May, two postal workers were charged in connection with a $63 million scheme involving stolen IRS refund checks. Investigations have found thousands of these checks being sold each month on illegal online marketplaces, resulting in significant financial losses for American taxpayers.
Currently, when an IRS refund check is reported as stolen, policy only allows issuance of another paper check—a process that exposes recipients to repeated theft risk.
If enacted, the Recovery of Stolen Checks Act would require the Treasury Department to create a secure process enabling eligible taxpayers to receive replacement refunds via direct deposit. This measure is intended to reduce risks associated with mail theft and payment delays.
