Individual Refund Security Act

Bill: 114-hr-4970
Sponsor: full_name: Rep. Salmon, Matt [R-AZ-5]
Introduced: 2016-04-15
Policy area: Taxation
Subjects: Bank accounts, deposits, capital

Computer security and identity theft

Consumer credit

Tax administration and collection, taxpayers
Latest action: action_date: 2016-04-15
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-04-15
action_desc: Introduced in House
text: <p><b>Individual Refund Security Act </b></p> <p>This bill amends the Internal Revenue Code to prohibit tax refunds from being issued to prepaid debit cards, unless: (1) the Department of the Treasury has verified the identity of the account holder, and (2) the refund is issued no earlier than 21 days after the date on which the tax return is filed. Treasury must conduct the verification required by this bill in the same manner that is used to verify the identity of account holders suspected of being victims of identity theft. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 4970 IN THE HOUSE OF REPRESENTATIVES April 15, 2016 Mr. Salmon introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to restrict the use of prepaid debit cards in the issuance of tax refunds.

1. Short title This Act may be cited as the Individual Refund Security Act . 2. Restriction on use of prepaid debit cards in issuing tax refunds (a) In general Section 6402 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (n) In general In the case of a refund of overpayment for any taxable year, such refund may be made to a prepaid debit card only if— (1) the identity of the account holder has been verified by an officer or employee of the Department of the Treasury, and (2) such refund is made not earlier than the date which is 21 days after the date on which the return of tax for such taxable year is filed. The verification under paragraph (1) shall be conducted in the same manner as, prior to the date of the enactment of this subsection, employees of the Department of the Treasury verified the identity of account holders who there was reason to suspect had been the victim of identity theft. . (b) Effective date The amendment made by this section shall apply to refunds of overpayments with respect to taxable years beginning after December 31, 2016.