U.S. Rep. Terri Sewell’s legislation, the Recovery of Stolen Checks Act, has passed the House, making it easier for taxpayers who have had their IRS checks stolen to receive a replacement. The bipartisan bill will allow taxpayers to get a replacement via direct deposit, rather than waiting for a replacement check, which was previously prohibited by IRS policies.
Sewell, a member of the House Ways and Means Committee, emphasized that the bill will help combat financial fraud and protect hard-working Americans from falling victim to check theft. The legislation will also strengthen law enforcement’s ability to prosecute criminals who steal people’s checks.
The bill was sponsored by Rep. Nicole Malliotakis and co-led by Sewell and Rep. David Kustoff, reflecting bipartisan support for addressing the issue of check theft. Sewell highlighted the importance of the legislation in helping taxpayers who are victims of lost or stolen checks avoid financial hardship.
According to Sewell’s office, there were about 40,000 IRS checks stolen in 2024, a significant increase from just 100 in 2022. The passage of this bill is a crucial step in addressing the growing problem of check fraud and providing relief to those who have been affected.
Overall, the Recovery of Stolen Checks Act represents a significant effort by lawmakers to protect taxpayers and combat financial fraud, with Sewell playing a key role in advocating for its passage.
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