WASHINGTON, DC) – Chairman Jason Smith of the House Committee on Ways and Means (MO-8) and Congresswoman Nicole Malliotakis (NY-11) sent a joint letter to Heather M. Hill, the Acting U.S. Treasury Inspector General for Tax Administration, and Tammy Hull, the U.S. Postal Service’s Inspector General, highlighting the rampant theft of U.S. Treasury-issued checks sent to constituents in New York’s 11th Congressional District. These checks includes Social Security payments and IRS tax refunds that never make it to the payee but instead are stolen in transit and cashed by thieves. The letter calls for their cooperation and involvement to investigate those responsible and urge policy changes to be enacted to solve this ongoing problem costing American taxpayers millions of dollars in New York’s 11th Congressional District alone.
The letter highlights the direct impact of stolen checks on taxpayers in NY-11 when Smith and Malliotakis write “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.”
The two are calling on the Treasury Inspector General for Tax Administration (TIGTA) and USPS Office of Inspector General (OIG) to conduct an investigation and are also asking for the following information.
A full evaluation of theft that is occurring, including the volume, frequency, locations, and method of these checks being stolen via USPS mail.
What taxpayers can do when they have a paper check stolen from the mail, including an assessment of how a taxpayer can switch to direct deposit and whether there are existing barriers to them doing so.
What changes need to be made to prevent these thefts from continuing to happen, including recommendations for how to solve this problem.
“Based on the reporting we have already seen of individuals, including former postal workers, who have stolen millions of dollars in IRS refund checks in New York, more must be done to get to the bottom of the scope and nature of this increase in postal thefts.” said Chairman Jason Smith. “A joint investigation by the inspectors general at Treasury and the U.S. Postal Service will allow for a broader look at this issue to not only better arm law enforcement in addressing the criminal activity occurring today but also to determine what actions should be taken to combat future fraudulent activity and to ensure those taxpayers who have been victims of this fraud can receive the funds owed to them without further hassle and uncertainty. I applaud Representative Malliotakis for leading this effort to protect her constituents and all American taxpayers.”
“My office continues to be informed by dozens of constituents that their U.S. Treasury-issued checks, such as IRS tax refunds and Social Security payments, are being stolen right out of the USPS mail. The current process to reissue these checks is long, tedious and is costing American taxpayers millions of dollars,” said Congresswoman Nicole Malliotakis. “Many of my constituents are hardworking taxpayers and senior citizens on Social Security, and when a check goes missing or is stolen, it directly impacts their livelihood. I am thankful to Chairman Jason Smith for working with me to highlight this important issue so we can protect American citizens across the country and their tax dollars. We are calling on these federal agencies to work together and bust this robust criminal operation and bring those responsible to justice.”
