1. Short title This Act may be cited as the Taxpayer ID Protection and Fraud Prevention Act . 2. Income tax refunds with respect to electronically filed returns required to be made by electronic funds transfer (a) In general Section 6402 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (n) Refunds To be made by electronic funds transfer (1) In general Except as otherwise provided in this subsection, any refund or payment made by the Secretary under this title with respect to an income tax return which is filed electronically shall be made by electronic funds transfer. (2) Exceptions The Secretary may, based on standards developed by the Secretary, waive the application of paragraph (1) to refunds or payments— (A) to persons or classes of persons for whom compliance imposes a hardship, including persons who do not have access to any of the methods by which the Secretary makes payments by electronic funds transfer (including bank accounts, prepaid debit cards, Direct Express Cards, digital wallets, and any other secured electronic payment method as may identified by the Secretary), and (B) in other circumstances as may be necessary. (3) Regulations The Secretary shall issue such regulations or other guidance as may be necessary to increase the percentage of refunds and payments made by electronic funds transfer, including regulations or other guidance which— (A) requires recipients of refunds or payments required to be made by electronic funds transfer to— (i) designate one or more financial institutions or other authorized agents to which such payments shall be made, and (ii) provide information necessary for such recipient to receive such refund or payment by electronic funds transfer, and (B) ensures that persons required to have an account at a financial institution under subparagraph (A) because of the application of paragraph (1)— (i) will have access to such an account at a reasonable cost, and (ii) are given the same consumer protections with respect to