Section 1 Short title
This Act may be cited as the “Individual Refund Security Act”.
Individual Refund Security Act
A BILL
To amend the Internal Revenue Code of 1986 to restrict the use of prepaid debit cards in the issuance of tax refunds.
Sec. 2 Restriction on use of prepaid debit cards in issuing tax refunds
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.”
Effective date— The amendment made by this section shall apply to refunds of overpayments with respect to taxable years beginning after December 31, 2016.