Refund Check

[Kram BergGold]

MFJ Client has a $4,000 refund for 2011. When the T/P tried to deposit the joint check into his individueal account it was not allowed. He was told that due to a new rule a joint IRS check has to be deposited into a joint account. Is this true? He asked me if he cna just ask IRS to credit it to 2012. Before I say no to him I want to make sure that this can't be done.

[Brilliant]

thats not true, it may need to be endorsed by both spouses, but it can be deposit in an individual account too,

[Lion]

Each bank has their own rules. I have some clients that bank where a joint check must be deposited into a joint account, and others where a check cannot be deposited into an account without at least one name matching (trying to cash a check for their child, for instance). Sometimes, direct deposit gets around a bank's own rules.

But, your client will have to do what his bank requires or bank elsewhere. Maybe if both endorse. Or, if checking is free, why not open a joint account, even if only temporarily. Or pay a fee to a check-cashing service to cash the check and then deposit the cash where ever he wants. Or, endorse back to the IRS and send in with a 2012 ES payment voucher. Deposit via the night deposit slot to see if it goes through. Have him talk with a bank manager and not just a teller.

[MLINDER42]

Refund Check

Check cashing service would want both husband and wife present to cash check.

[jimmcg]

The bank is just trying to hustle the opening of a new account. A properly endorsed negotiable instrument such as a bank draft (check) can be deposited into any account you specify. Beware of any advise from a banker.

[Burke]

It is not evident from the OP that the check was endorsed by both parties. If not, I can see why the bank is hesitant (or refusing) to put it in one account. If it is endorsed and they are refusing, that's just their policy. If there is no joint account, but both bank at the same institution, with both present, they should be able to cash it.

[OtisMozzetti]

If I may "slightly?" expand the subject, I have seen a lot of clients that ask to deposit their joint refund DIRECTLY into an individual checking account in one of their names. Most of the time, it appears to go through. However, I always warn those clients that the bank might not accept the deposit because it doesn't have both matching names and that it would go back to the IRS for a check to be issued after several weeks of delay. A small fraction change their request after they hear my warning. Also, one worries that only one of the spouses is getting the money even though both of them are signing the tax return which authorizes the direct deposit.

[Roberts]

MFJ Client has a $4,000 refund for 2011. When the T/P tried to deposit the joint check into his individueal account it was not allowed. He was told that due to a new rule a joint IRS check has to be deposited into a joint account. Is this true? He asked me if he cna just ask IRS to credit it to 2012. Before I say no to him I want to make sure that this can't be done.

I had this - the old client asked the teller if he could deposit it into his single account and of course the teller said no. The old client flipped out and blamed ME.

Two suggestions:

Deposit it at the ATM or
Go to a different teller and don't mention it. If you can have 2-3 other checks to deposit with it, so much the better.

Once it gets past that teller, it's going to flow through the system just fine.

[JohnH]

Nah.
It's much more fun just to blame you.
Gives him something to do with his spare time.

[Roberts]

Nah.
It's much more fun just to blame you.
Gives him something to do with his spare time.

This is a 90+ year old client who thinks everything is late. Our checks go out on the 2nd business day of the month. For July this year that means it's the 3rd. The horror of the world occurred on the 4th when people took a day of vacation. Every month he thinks the check is late and complains. He knows it's mailed on the 2nd but he thinks it's late if it's not in his hands on the second. (he refuses to have the money wired into his account - likes receiving that check!)

I was getting 3 phone calls a day looking for that check. 9am call to notify me he's looking for the check - did I think it would arrive today?
12:30 to notify me the mailman was late again. He's late every day.
3:30 call to notify me it wasn't in the mail.

This month the mail bag must have gotten lost somewhere because everyone's envelope was post marked the 3rd but they all got them on the 10th. All my fault.

[JohnH]

The first thing that comes to mind with this type of behavior is some sort of dementia. I've dealt with a couple of situations in the past and I think I'm encountering another one with a client now. If we live long enough, the odds of any of us developing it are very high.