Staten Island Reporter

Congresswoman Nicole Malliotakis of New York has introduced a bipartisan bill aimed at combating check fraud and aiding taxpayers affected by stolen tax refunds. The proposed legislation, known as the Recovery of Stolen Checks Act, seeks to provide an option for taxpayers who have had their U.S. Treasury tax refund checks stolen in the mail to receive a replacement via direct deposit.

"Many of my constituents are hardworking taxpayers and when a check goes missing or is stolen, it directly impacts their livelihood," stated Congresswoman Malliotakis. She expressed gratitude towards the Ways and Means Committee for enabling her to address this issue through legislative action. According to Malliotakis, reissuing payments through direct deposit offers a practical solution to prevent theft and safeguard taxpayer money.

Malliotakis' district has experienced significant postal fraud incidents, with $5.3 million reported stolen across 377 cases. Some checks were valued up to $500,000, with instances requiring multiple reissues before successful delivery. Last year, she addressed this matter with IRS Commissioner Danny Werfel and U.S. Treasury Secretary Janet Yellen.

Congressman David Kustoff from Tennessee echoed these concerns: "Paper checks getting lost or stolen in the mail is a major problem in Tennessee and across the nation." He emphasized that the Recovery of Stolen Checks Act would allow Americans to opt for direct deposits from the U.S. Treasury instead of potentially vulnerable paper checks.

Representative Terri Sewell from Alabama also supported the initiative: "I’ve heard from constituents in Alabama’s 7th district who have struggled to receive the tax returns they’re owed simply because of outdated IRS policy." Sewell endorsed the bipartisan effort allowing constituents to choose direct deposit if their return was lost or stolen.

The text for H.R. 1155 can be accessed online for further details about the proposed bill.

Malliotakis serves on the House Committee on Ways and Means where she focuses on issues such as increasing the State and Local Tax Deduction cap, reducing taxes for seniors, and promoting domestic production by encouraging companies to relocate manufacturing facilities back home.