Washington, DC - In a move to modernize outdated IRS procedures and safeguard taxpayer refunds, U.S. Senators Marsha Blackburn (R-Tenn.) and Mark Warner (D-Va.) have introduced the Recovery of Stolen Checks Act, a bipartisan bill designed to allow victims of stolen or lost paper refund checks to receive their replacement payments via direct deposit.

Senator Blackburn emphasized the urgency for reform, stating that “an outdated IRS policy is leaving Tennesseans vulnerable to having their tax refund checks repeatedly lost or stolen in the mail.” She added that delayed refunds can place a heavy burden on working families.

Senator Warner echoed the concern, noting that “with check fraud costing taxpayers hundreds of millions of dollars, it makes no sense for the federal government to keep reissuing vulnerable paper checks.” He called the bill a “smart, secure fix” that would speed up payments and reduce fraud.

The legislation responds to a growing wave of tax refund theft, including a $63 million scheme involving postal workers and thousands of stolen checks being sold monthly on the dark web. Under current IRS policy, victims of stolen checks can only receive a replacement in the form of another paper check—leaving them exposed to repeat theft.

The proposed law would require the Department of the Treasury to create a secure system allowing eligible taxpayers to opt for direct deposit when receiving replacement refunds. This change aims to reduce delays, prevent fraud, and restore trust in the refund process.

The bill has already passed the House of Representatives and is backed by a broad coalition of lawmakers, including Senators Rick Scott, Catherine Cortez Masto, Jim Justice, Ron Wyden, Pete Ricketts, Maggie Hassan, Jon Husted, and Raphael Warnock. House sponsors include Representatives David Kustoff (R-Tenn.), Nicole Malliotakis (R-N.Y.), and Terri Sewell (D-Ala.).