Bipartisan Legislation Introduced To Crack Down On IRS Check Fraud, Get Stolen Money Returned To Taxpayers

Malliotakis Introduces Bipartisan Legislation to Crack Down on Check Fraud, Return Stolen Money to Taxpayers

Editor’s note: Recently, Rep. Malliotakis discussed the issue of rampant theft of IRS checks that are stolen before they arrive at residents’ homes.  This legislation will help to address this issue.  Thus far, there have been multiple blue mail collection boxes removed from various locations across Staten Island and New York City, where the reason given was theft.  Local politicians have joined together to try and have the boxes restored as they provided a convenience to postal customers.  

(WASHINGTON, D.C.) – Congresswoman Nicole Malliotakis (NY-11) joined Reps. David Kustoff (TN-08), and Terri Sewell (AL-07) in introducing The Recovery of Stolen Checks Act, bipartisan legislation that would allow taxpayers who’ve had tax refunds from the U.S. Treasury stolen in the mail to receive a replacement check via direct deposit.

“Many of my constituents are hardworking taxpayers and when a check goes missing or is stolen, it directly impacts their livelihood,” Congresswoman Malliotakis said. “I am thankful to the Ways and Means Committee for allowing me to highlight this important issue and introduce legislation to rectify it so we can protect taxpayer dollars from being repeatedly stolen. Having reissued payments delivered via direct deposit is a commonsense solution to this systematic and widespread problem, and will prevent criminals from preying on taxpayers and stealing their hard-earned money.”

Malliotakis’ district has been hit hard by postal fraud, with at least $5.3 million in checks stolen across 377 cases. Check amounts range from a few hundred dollars up to $500,000, with one constituent needing their check reissued four times before it was received. Last Congress, Malliotakis pressed IRS Commissioner Danny Werfel and U.S. Treasury Secretary Janet Yellen to address this issue.

“Paper checks getting lost or stolen in the mail is a major problem in Tennessee and across the nation,” said Congressman Kustoff. “That is why I am introducing the Recovery of Stolen Checks Act in the House of Representatives. This bipartisan bill would give Americans the option to receive a direct deposit from the U.S. Treasury instead of another check in the mail that might get stolen. This is commonsense legislation that will protect U.S. taxpayers and keep refunds out of the hands of criminals.”

“I’ve heard from constituents in Alabama’s 7^th district who have struggled to receive the tax returns they’re owed simply because of outdated IRS policy,” said Rep. Sewell. “That’s why I’m pleased to introduce bipartisan legislation that allows my constituents to receive their returns via direct deposit if the return was lost or stolen at their address.”

BILL TEXT FOR H.R. 1155 CAN BE FOUND HERE

Malliotakis is a member of the House Committee on Ways and Means where she is acutely focused on increasing the State and Local Tax Deduction (SALT) cap, reducing the tax burden on America’s seniors, and increasing domestic production by incentivizing companies to bring their manufacturing facilities and supply chains home.

Banner Image: IRS Taxes. Image Credit – Kelly Sikkema 

Congresswoman Nicole Malliotakis

Congresswoman Nicole Malliotakis was sworn in on January 3, 2021 to represent Staten Island and Southern Brooklyn. Prior to serving in the U.S. House of Representatives, Congresswoman Nicole Malliotakis was elected to the New York State Assembly on November 2, 2010, defeating a two-term incumbent. In the Assembly, she served as Minority Whip and the ranking minority member of the Assembly Committee on Governmental Employees. For five terms, Congresswoman Malliotakis fought to restore ethics in Albany, expand transit service in her district, improve programs for senior citizens, reform education and improve New York’s economic climate by reducing the tax burden on small businesses and residents. A cornerstone of her tenure was helping her community recover and rebuild following the devastation of Hurricane Sandy in 2012. In addition to advocating for these same issues in Washington, Congresswoman Malliotakis is acutely focused on securing New York’s fair share of federal mass transit funding, which would go towards expanding transportation services and easing traffic congestion, while also championing public safety by supporting our nation’s law enforcement officers. Congresswoman Malliotakis is the daughter of immigrants, her father from Greece and her mother a Cuban exile of the Castro dictatorship. She is currently the only Republican member representing New York City in Congress, representing a district spanning the boroughs of Brooklyn and Staten Island. She is a passionate advocate for animal rights and the strengthening of animal cruelty laws, and in her spare time, enjoys spending time with her chihuahua, Peanut.