Ways and Means Democrats Applaud New Treasury Prepaid Debit and Payroll Card Pilot Program

Press Release

Ways and Means Committee Ranking Member Sander M. Levin (D-MI) along with Committee Reps. John Lewis (D-GA) and Xavier Becerra (D-CA) are applauding the launch of a Department of Treasury pilot program that offers convenient, electronic delivery of Federal tax returns to taxpayers with little or no access to banking services. In April of last year, Congressman Becerra introduced legislation calling on Treasury to consider delivering tax refunds on debit cards to those taxpayers without bank accounts. A provision to study the alternatives passed the House last year in the Taxpayer Assistance Act of 2010, introduced by Congressman Lewis.

"Treasury's pilot program takes an important step toward ensuring that working American families receive their tax refunds as quickly and securely as possible," said Ranking Member Levin. "The flexibility offered by this program will empower taxpayers to use their tax returns in a way that best suits them and the needs of their families. I also appreciate the Treasury Department's attention to the fees associated with these cards and urge them to ensure that this new option is a good deal for refund recipients."

"I am pleased that the Treasury has launched this program," said Congressman Lewis. "It is an important step toward delivering faster tax refunds to low-income taxpayers and to those who do not have access to traditional banking services. The option to use prepaid debit cards will help these taxpayers take full advantage of free electronic filing options provided by the IRS."

"For the millions of working Americans--many of whom reside in my district--who do not have access to a traditional bank account, this innovative program from the Treasury Department will put money in their pockets in the fastest and most convenient way possible," Rep. Becerra said.

According to the Treasury Department release, "As the next step in this pilot, originally announced in September, Treasury will mail letters next week to 600,000 low- and moderate-income individuals nationwide. The letters will invite these taxpayers to consider activating a MyAccountCard Visa® Prepaid Debit Card in time to have their 2010 federal tax refund direct deposited to the card. Compared to paper checks, direct deposit provides a safer, faster and more convenient way to receive a federal tax refund as well as other regular income."

In her 2009 Annual Report to Congress, the National Taxpayer Advocate recommended that a Treasury stored value card be created to enable unbanked taxpayers to take advantage of the benefits of direct depositing their refunds.
Click here for further information from the Treasury Department.

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