Anything that I should have done?

[AccTaxMan]

Today a new client came in. Single person with only one W-2. I prepared the tax return right away for him and the refund is about $1,500. He gave me a check for the direct deposit of the refund. But the name and address at the upper left corner was cut off. I used the information on the check for the direct deposit information.

After he has left, the most I thought about the situation, the more worried I am. What about if he has just stolen someone else's W-2., came here to prepare the tax return, and gave me a check of himself for the direct deposit refund so the money will go to his account?

Is there anything that I should have done but I did not do? I did ask him to show me his ID and the name on the ID does match the W-2. But still...what about if it was a fake ID?

Does anyone know if the bank matches the taxpayer name of the refund with the name on the account before they let the refund deposit go through? If yes, at least I can be sure the refund will be deposited to the name of the person on the W-2.

[ATSMAN]

What document did you use to verify identity?

When I get a brand new client, the first thing I do is get their Driver's License and scan that in and then, give them my engagement letter and privacy notice to sign.

At this point you can't do anything to stop that refund. Call the company that is on the W2 and see if that fellow works there.

You can check the bank routing and account information with the bank. I have done that. You will have to explain that you are doing that persons taxes and if they would verify if that is indeed that person's account, so that you can have the refund direct deposited. Don't ask for any balance info etc. because they will hang up on you.

[David1980]

Does anyone know if the bank matches the taxpayer name of the refund with the name on the account before they let the refund deposit go through? If yes, at least I can be sure the refund will be deposited to the name of the person on the W-2.

They should, but don't always. There's always a few entertaining stories about tax refunds getting deposited into the wrong account each year. http://abclocal.go.com/kgo/story?id=9234180 for example.

Personally I wouldn't have done anything different. You have a copy of a W-2. You saw ID that matched the name. The corner of the check being ripped off could just be that the address that was on the checks was an old address and the taxpayer didn't want it accidentally entered anywhere. The only reason I even ask people for a check when doing a direct deposit is because I don't trust them to read it off correct to me and if it ends up being wrong I'm the first person they're going to blame.

[Black Bart]

I agree with Dave.

I'd have done the same and wouldn't worry too much about it -- it's probably harder to make a fake ID in real life than in the movies. Besides, if he was a sure-enough con man, he'd probably have filed HOH and dreamed up some kids for a big EIC/CTC haul rather than a measly $1,500. Just wait 'til Monday (a long time, isn't it) and call the bank about their policy. You aren't responsible (neither are you a CID agent) if someone decides to become a crook. As the prez sez, that's "above your pay grade."