Bank refuses FTD

[Larmil]

Use to be that a bank was required to accept an FTD if the client had money in their bank account to cover or presented cash. Has that changed? Friday client's bank reused to take FTD and client withdrew cash and took it to another bank. The FRB as a local call for me but this happened after their business hours Friday.

[ChEAr$]

Formerly

Use to be that a bank was required to accept an FTD if the client had money in their bank account to cover or presented cash. Has that changed? Friday client's bank reused to take FTD and client withdrew cash and took it to another bank. The FRB as a local call for me but this happened after their business hours Friday.

not all banks were FTD depositories, although I've never met a bank in this area that wasn't.
With today's bank turmoil, if a bank were in deep.... uh... trouble with Federal reserve with
state regulators looking at them daily, they might have had this capability rescinded by FRB.

Was it a nationally known institution? or a local one?

[JohnH]

We had a discussion over on the ATX forum about this a week or so ago. Never did resolve for sure if the bank was required to accept the FTD if the money is in the account, but we definitely decided it would be time to shop around for another bank. I'd certainly move my personal and business accounts over this kind of nonsense...

[Larmil]

not all banks were FTD depositories, although I've never met a bank in this area that wasn't.
With today's bank turmoil, if a bank were in deep.... uh... trouble with Federal reserve with
state regulators looking at them daily, they might have had this capability rescinded by FRB.

Was it a nationally known institution? or a local one?

Not sure. It was First Federal Bank in the KC, MO area.

[AJsTax]

deposits

We have had a couple banks in our area send out notices last year and then stop handling the deposits.(fair sized regional banks, i believe.) They claimed it cost too much and other options were available. One of them made it available online through their web site, just not in person. We convinced most of the clients affected to go to EFTPS. Most of them like that better, now that they are accustomed to using it. I think that is true for most of us, we prefer to stay in our comfort zone and not be forced into something new.

[Jesse]

In our area a couple of the banks are now charging a small fee for the 8109's.

[Larmil]

Thanks to all. I guess I am behind the times.

[S T]

Best Solution

Have your taxpayer sign up on EFTPS. It works great! T/P can usually also sign up for the State e-payment system as well.

It is so easy to promote, timely payments (if done a few days ahead of payment due date, t/p doesn't have to go to the bank, t/p doesn't have to write a check, and there is a payment record).

The only thing is that you can not wait until the last minute such as the 15th if they are a monthly payer. There is usually at least a day delay if not 2-3 days delay.

Sandy

[Snaggletooth]

Not Behind the Times

Thanks to all. I guess I am behind the times.

You are NOT behind the times. More bank shenanigans. Take your money somewhere else. In most industries, whoever has money to pay the fiddler calls the tune. Banks somehow think they are in a position to tell depositors what they are going to do and not do with their money. However, people with bad banking records (constantly overdrafting or not keeping any money in their account) will not be able to "call the tune."

I'm old enough to remember several recessions, and this one is going to be as bad as any of them. There are characteristics that are common to recovery.

Businesses begin to offer more VALUE to increase sales, and they quit trying to cover their losses with price increases. In a recession, no one will pay for price increases on the crap they sell or service. But by offering VALUE, they attract customer buying, and eventually are able to work their way out of the recession by increasing (or restoring) their VOLUME. Increases in volume also puts more people to WORK, whereas price increases, gimmicks, and fancy rhetoric does nothing for the workforce. Everyone in a business just has to work harder to maintain volume, and not necessarily just increase their price.

This applies to tax preparers as well. If there was ever a year for me to increase prices, this would be the year. But I am holding the line on increases, to assure satisfaction during this rough period. I'll just have to work harder.

Banks such as the one you are dealing with need to have a reality check. They are not exempt from slowdowns in the economy, and need to work harder and offer value just like everyone else. They shouldn't pick and choose about the providing for basic services.

[Burke]

Banks such as the one you are dealing with need to have a reality check. They are not exempt from slowdowns in the economy, and need to work harder and offer value just like everyone else. They shouldn't pick and choose about the providing for basic services.

I wish someone would tell the IRS and state tax offices the same thing. The IRS office down the hall from me let all its personnel go but 2 people; they now shut down every day for lunch from 12:00 - 1:00, throw everybody out in the hall to mill around for an hour until they come back.