W&M Lawmakers Ask Inspectors General to Probe Stolen IRS Checks

August 27, 2024

Ms. Heather M. Hill
Acting Treasury Inspector General for Tax Administration
U.S. Department of the Treasury
1401 H Street NW, Suite 469
Washington, DC 20005

The Honorable Tammy Hull
Inspector General
U.S. Postal Service
1735 N. Lynn Street
Arlington, VA 22209

Dear Inspectors General Hill and Hull:

We write regarding our concerns over extensive reports of an increase in stolen government checks, particularly from the Internal Revenue Service (“IRS”), delivered through the U.S. Postal Service (“USPS”) in various locations throughout the country, with a specific focus on the 11th Congressional District of New York. Constituents have experienced this as a persistent issue. Therefore, we request that the U.S. Treasury Inspector General for Tax Administration (“TIGTA”) and USPS Office of Inspector General (“OIG”) launch a joint, formal investigation into the theft of paper checks issued to taxpayers by the U.S. government.

There have been several high-profile arrests of individuals that conducted elaborate schemes to defraud Americans of their refund checks from the IRS.¹ These include reports of USPS workers who allegedly sought employment with USPS at a facility in New York to exploit their position and steal checks for personal gain.² The theft of millions of dollars of IRS refunds owed to American taxpayers leads to frustration and low confidence in government systems that should work for taxpayers.

While we applaud law enforcement and all partners involved in uncovering some of the theft and holding those bad actors accountable, constituents of the 11th Congressional District of New York, and other districts across the country, continue to be victims of mail theft of government checks that they rely on. Thus far, the 11th Congressional District of New York has experienced a cumulative theft of over $3 million, and that figure is expected to increase.

Moreover, when victims report a stolen check, the government subsequently sends another paper check in the mail, and in some instances the replacement check is stolen as well. This creates an environment of uncertainty and frustration for intended check recipients, and it is unacceptable. Thus, we would like TIGTA and USPS OIG to conduct an investigation and evaluation of: (1) the theft that is occurring, including the volume, frequency, locations, and method of these checks being stolen via USPS mail; (2) what taxpayers can do when they have a paper check stolen from the mail, including an assessment of how a taxpayer can s witch to direct deposit and whether there arc existing barriers to them doing so; and (3) what changes need to be made to prevent these thefts from continuing to happen, including recommendations for how to solve this problem.

We respectfully request that you provide us with a briefing on what is currently known about these schemes; what has been done to prevent and combat this fraudulent behavior; and the work that TIGTA and the USPS OIG have done on this issue to date. We also request that you immediately begin therefore mentioned joint investigation, and that you provide us with regular status updates as you conduct this work. Please contact the majority staff of the Committee on Ways and Means by September 10, 2024, to schedule the requested briefing, or if you have any questions about this request. Thank you for your prompt attention to this matter.

Sincerely,

Jason Smith
Chairman
Committee on Ways and Means

Nicole Malliotakis
Member of Congress
Committee on Ways and Means