Hold Check?

[SueBaby]

Does anyone hold a post dated check and for how long?

Client wanted me to hold her $325 for the fee until she got her refund on the 14th. She called and said it was late. I called to see about it and it was delayed and told her to call that 800#. Found out she did not do the 2005. Now she wants me to wait until she gets the 05 taken care of and then cash her ck.

How would you handle this? I told her I did my work for 07 not 05. She said if I cashed it there would not be any money there. Which she is right -- I called her bank!

[ChEAr$]

Never, EVER, take a post dated check.

Sure, that's my opinion, but most I think will agree.

Such an instrument is nothing but an IOU!

[SueBaby]

Sure, that's my opinion, but most I think will agree.

Such an instrument is nothing but an IOU!

If I didn't take some kind of payment I probably would not have gotten paid at all. I keep calling on her refund and when it is okay that ck WILL be deposited.

[Safire]

I will normally let someone postdate a check until their anticipated refund date, but not for that large of an amount. I don't mind taking the risk for $50 or $60 but wouldn't want to risk losing several hundred, we work too hard to not get paid.

[thomtax]

A difference

There is a difference in holding a check and in taking a post dated check. It is possible that it has changed, but at one time, in our state, a post dated check was considered an open ended IOU to be paid when the writer decided to pay. I know of one dealership that lost a pickup, after the trial, because of taking one that was post dated.

LT

[SueBaby]

There is a difference in holding a check and in taking a post dated check. It is possible that it has changed, but at one time, in our state, a post dated check was considered an open ended IOU to be paid when the writer decided to pay. I know of one dealership that lost a pickup, after the trial, because of taking one that was post dated.

LT

OUCH! I hope that is not the case here. I know where they work and their bank, so I will give them the benefit of doubt and take their word they are working on 05. And just to be sure I will keep tabs on their refund and bank.

[dkss]

No post dating

I will not accept a post dated check, but I will agree to hold on to the check for no longer than a week before depositing. I only do this on a case by case basis and never for that much money. I also let them know that I am making the exception this time only, and then I proceed to make a notation in the file so they can't do they same thing next year!

[LawrenceGR]

I don't

take post dated checks, but I will hold a check for a week or so. I think it depends on your clients, most of mine are pretty trustworthy, so I don't mind waiting a little bit.

[SueBaby]

I will not accept a post dated check, but I will agree to hold on to the check for no longer than a week before depositing. I only do this on a case by case basis and never for that much money. I also let them know that I am making the exception this time only, and then I proceed to make a notation in the file so they can't do they same thing next year!

LIVE AND LEARN that is all I have been doing this year. Good point and I will take that and go with it from now on. Thanks

[Possi]

I hold 'em

I don't have a problem holding checks for my clients.

I tell them if they DO NOT get their refund on the expected date, call me. Otherwise, it's going in the bank the day after the deposit is expected.

In 6 seasons, I've had 2 checks bounce. Those are good clients, as they all are, and I don't want to lose them.

I have over 300 clients this year. 2 bad checks that I know will be made good, are worth the risk for me. Then again, look at the source. All my clients are word of mouth. They know someone else who comes to me. They don't want to be embarrassed! *sweet*

[ChEAr$]

And the solution

If I didn't take some kind of payment I probably would not have gotten paid at all. I keep calling on her refund and when it is okay that ck WILL be deposited.

there is not to release the tax return until you're paid.

"In God we trust: all others pay cash."

[ED SMITH]

I will only hold or take a post dated check from someone that has been a client for at least three years. Otherwise, there is no recourse to collect the check, because you took a check knowing that it did not have sufficient funds.

[taxladyea]

Never take a post dated check

By this I mean if you must hold a check have them date the check for the date of the pickup and slap a post it note to hold to such and such a date. If heaven forbid the client should die before the date on the post dated check the debt is no good.

I hold checks quite often and have for the entire 42 years I have been in the business and do not remember every having a problem with those people but have we others who write checks knowing it is not good.

Bet you get your money!

[JohnH]

No policy

Whether or not to accept post-dated checks is one of those things you really can't have a "policy" about. A policy will cause you to do the wrong thing at the wrong time, the right thing at the wrong time, or the wrong thing at the right time, all for perfectly valid reasons because "my policy says so".

I think accepting post-dated checks is a matter of judgement and intuition - most of the time you'll know when to do so or not to do so. And if your make a few mistakes along the way, I guarantee your intuition will improve. Consider the losses (if any) simply a cost of sharpening your intuition.

[Davc]

Another good reason to routinely request that new clients bring a copy of the last return filed to the appointment. 0