Senators introduce SAVINGS Act of 2017—bipartisan legislation to allow taxpayers to continue receiving IRS refunds in form of U.S. paper savings bonds; These bonds are a critical savings opportunity for workers without a checking or savings account
This option is set to expire after the 2017 tax season; If eliminated, these bonds will only be available online, restricting access for nearly 10 million workers
WASHINGTON, DC – Today, Senator Amy Klobuchar (D-MN) and a bipartisan group of Senators introduced the Save Access to a Valuable Investment Needed to Generate Savings (SAVINGS) Act of 2017, legislation that would preserve the Tax Time Savings Bond program. Since 2010, the Tax Time Savings Bond program has provided taxpayers the option to receive IRS returns in the form of a paper U.S. Savings Bond. This is a critical savings opportunity, particularly for workers without a checking account, a savings account, or other type of banking product.
“Access to a bank account or the internet shouldn’t determine a person’s ability to save for their future,” Senator Klobuchar said. “U.S. Savings Bonds have been a key to saving for many Americans since World War II. Our bipartisan legislation would help ensure that people can continue to use their tax returns to help build financial security.”
The SAVINGS Act of 2017 would require the U.S. Treasury Department to continue to provide an option on the IRS tax form for consumers to use some or all of their tax return to purchase a U.S. Savings Bond in paper form, for either themselves or a designated recipient. This option will remain in place until the U.S. Treasury establishes a suitable alternative that serves the unbanked and individuals who lack internet access.
The SAVINGS Act of 2017 is supported by the following organizations: Commonwealth, Financial Security Program – Aspen Institute, Center for Financial Services Innovation (CFSI), Center for Public Policy Priorities, Clarifi, Corporation for Enterprise Development (CFED), EARN, Even, Impact America, Just Harvest, Maryland CASH, Mobility Capital Finance (MoCaFi), MyPath, National League of Cities, Neighborhood Trust Financial Partners, and the Southern Bancorp Community Partners.
Joining Klobuchar in introducing this legislation are Senator Patty Murray (D-WA), Senator Susan Collins (R-ME), and Senator Angus King (I-ME).