SEC. 2. INCOME TAX REFUNDS WITH RESPECT TO ELEC-
TRONICALLY FILED RETURNS REQUIRED TO 
BE MADE BY ELECTRONIC FUNDS TRANSFER. 
(a) IN GENERAL.—Section 6402 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(n) REFUNDS TO BE MADE
BY ELECTRONIC 
FUNDS TRANSFER.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, any refund or payment 
made by the Secretary under this title with respect 
to an income tax return which is filed electronically 
shall be made by electronic funds transfer. 
‘‘(2) EXCEPTIONS.—The Secretary may, based 
on standards developed by the Secretary, waive the 
application of paragraph (1) to refunds or pay-
ments— 
‘‘(A) to persons or classes of persons for 
whom compliance imposes a hardship, including 
persons who do not have access to any of the 
methods by which the Secretary makes pay-
ments by electronic funds transfer (including 
bank accounts, prepaid debit cards, Direct Ex-
press Cards, digital wallets, and any other se-
cured electronic payment method as may identi-
fied by the Secretary), and 
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‘‘(B) in other circumstances as may be 
necessary. 
‘‘(3) REGULATIONS.—The Secretary shall issue 
such regulations or other guidance as may be nec-
essary to increase the percentage of refunds and 
payments made by electronic funds transfer, includ-
ing regulations or other guidance which— 
‘‘(A) requires recipients of refunds or pay-
ments required to be made by electronic funds 
transfer to— 
‘‘(i) designate one or more financial 
institutions or other authorized agents to 
which such payments shall be made, and 
‘‘(ii) provide information necessary for 
such recipient to receive such refund or 
payment by electronic funds transfer, and 
‘‘(B) ensures that persons required to have 
an account at a financial institution under sub-
paragraph (A) because of the application of 
paragraph (1)— 
‘‘(i) will have access to such an ac-
count at a reasonable cost, and 
‘‘(ii) are given the same consumer 
protections with respect to such account as 
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other account holders at the same financial 
institution.’’. 
(b) NO INFERENCE WITH RESPECT TO FORM OF 
ELECTRONIC FUNDS TRANSFER.—Nothing in the amend-
ment made by this section shall be interpreted to restrict 
the form of electronic funds transfer by which the Sec-
retary of the Treasury, or his designee, may make refunds 
or payments. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to refunds and payments made 
after December 31, 2019. 
SEC. 3. REFUNDS TO PREPAID DEBIT CARDS, DIRECT EX-
PRESS CARDS, ETC. 
The Secretary of the Treasury, or his designee, 
shall— 
(1) to the maximum extent practicable, allow 
income tax refunds to be made by electronic funds 
transfer to prepaid debit cards, Direct Express 
cards, digital wallets, and any other secure electronic 
payment method as may be determined by the Sec-
retary, 
(2) ensure that taxpayers are aware of the var-
ious methods referred to in paragraph (1) by which 
taxpayers may received income tax refunds by elec-
tronic funds transfer, and 
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(3) revise references in materials provided to 
taxpayers (including income tax returns and instruc-
tions) to ensure that the various accounts to which 
refunds may be made are referenced, not simply 
checking and savings accounts. 
SEC. 4. REPORT ON IMPLEMENTATION OF REQUIREMENT 
THAT ALL INCOME TAX REFUNDS BE MADE 
BY ELECTRONIC FUNDS TRANSFER. 
Not later than the date which is 1 year after the date 
of the enactment of this Act, the Secretary of the Treas-
ury, or the Secretary’s delegate, shall submit a written re-
port to Congress describing how the Secretary would im-
plement a requirement that all income tax refunds be 
made by electronic funds transfer. Such report shall in-
clude any legislative recommendations that the Secretary 
may have with respect to the implementation of such a 
requirement. 
SEC. 5. DECREASE IN RETURN THRESHOLD FOR REQUIR-
ING ELECTRONIC FILING. 
(a) IN GENERAL.—Section 6011(e)(2)(A) of the In-
ternal Revenue Code of 1986 is amended by striking 
‘‘250’’ and inserting ‘‘25’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to returns the due date for which 
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(determined without regard to extensions) is after Decem-
ber 31, 2018. 
SEC. 6. MODIFICATION OF EARLIEST DATE ON WHICH 
CREDITS OR REFUNDS IN CONNECTION WITH 
CHILD TAX CREDIT AND EARNED INCOME 
TAX CREDIT ARE MADE. 
(a) IN GENERAL.—Section 6402(m) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘the 15th 
day of the second month’’ and inserting ‘‘the 1st day of 
the third month’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to credits or refunds made after 
December 31, 2018. 
SEC. 7. ANNUAL REPORT ON IMPROPER PAYMENTS. 
The Secretary of the Treasury, or the Secretary’s del-
egate, shall annually submit a written report to Congress 
which identifies the aggregate amounts of improper pay-
ments made by the Internal Revenue Service. Such report 
shall separately state the aggregate amount of such pay-
ments by relevant subcategories. Such subcategories shall 
include underpayments, overpayments, payments attrib-
utable to identity theft, payments attributable to misiden-
tification other than identity theft, payments attributable 
to other fraud, and such other subcategories as the Sec-
retary determines would be useful. 
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SEC. 8. PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS IDEN-
TITY THEFT. 
The Secretary of the Treasury (or the Secretary’s 
delegate) shall work collaboratively with the public and 
private sectors to protect taxpayers from identity theft re-
fund fraud. 
SEC. 9. RECOMMENDATIONS OF ELECTRONIC TAX ADMIN-
ISTRATION ADVISORY COMMITTEE REGARD-
ING IDENTITY THEFT REFUND FRAUD. 
The Secretary of the Treasury shall ensure that the 
advisory group convened by the Secretary pursuant to sec-
tion 2001(b)(2) of the Internal Revenue Service Restruc-
turing and Reform Act of 1998 (commonly known as the 
Electronic Tax Administration Advisory Committee) stud-
ies (including by providing organized public forums) and 
makes recommendations to the Secretary regarding meth-
ods to prevent identity theft refund fraud. 
Æ 
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