Summary

Allows taxpayers who qualify for a replacement paper refund check after a lost or stolen refund to choose to receive that replacement by direct deposit instead of a new paper check. The Treasury (IRS) must issue regulations within 6 months of enactment to set the procedures for making that election and processing the direct deposit; the change is effective on enactment.

• Allows eligible taxpayers to elect direct deposit instead of receiving a replacement paper refund check for a lost or stolen refund.
• Requires the Treasury/IRS to issue implementing regulations within 6 months of enactment.
• Applies only to replacement checks for overpayment refunds (lost or stolen refund checks).
• Effective on the date of enactment, but practical implementation depends on the Treasury's regulations.
• Does not provide new appropriations; it mandates rulemaking rather than funding.
• Intended benefits include faster and more secure delivery compared with mailed replacement checks.
• Regulations will need to address identity verification and fraud-prevention safeguards.
• Affects taxpayers receiving refunds, and requires modest administrative work by the IRS and financial institutions.