In an article published by The Wall Street Journal on October 4, 2024, Ashlea Ebeling reports on the growing issue of tax refund check theft, with millions of dollars in refund checks being stolen from the mail. According to the IRS, nearly 10 million taxpayers received paper refund checks last year, making them a target for fraud. Even replacement checks are being stolen, leaving taxpayers in a cycle of requesting new ones.

Rep. Nicole Malliotakis (R., N.Y.) has handled 218 cases of stolen refund checks in her district, totaling $3.8 million. One taxpayer, Bennett Grimm, has had multiple checks stolen and is still awaiting his $96,000 refund after the sale of his medical practice.

The IRS is working on a technological fix that will allow taxpayers to switch from paper checks to direct deposit, but it is still years away. IRS Commissioner Danny Werfel urges taxpayers to opt for direct deposit, which he says is faster and safer. Meanwhile, the Treasury Department continues to deal with the rise in mail theft-related check fraud and has prosecuted several individuals involved in these schemes.

The IRS is also modernizing its system to address this issue, but for now, those affected must go through a lengthy refund trace process. Despite efforts, the thefts persist, putting pressure on the IRS and Treasury to find more immediate solutions.

(Source:  Ashlea Ebeling, "Millions of Dollars in Tax Refund Checks Are Getting Stolen," The Wall Street Journal, October 4, 2024)