ILLMAS Posted August 31, 2015 Report Share Posted August 31, 2015 IRS cashes check payable to the Illinois Department of Revenue, how does this happen? Short-story: TP mixed up mailing envelopes and sent the IRS payment to the state of IL, the state payment to the IRS. The state called the TP to let them know of the error, they even mailed out the checks to the IRS, but the IRS cashed the IL checks. Quote Link to comment Share on other sites More sharing options...
Catherine Posted August 31, 2015 Report Share Posted August 31, 2015 I have seen this several times. Shame on the bank that took the check and the one that honored the check. Quote Link to comment Share on other sites More sharing options...
TaxmannEA Posted August 31, 2015 Report Share Posted August 31, 2015 Actually, the taxing bodies do have the authority to do this. I've had several cases where the client has sent the payments to the wrong agency. The last time it happened, the IRS deposited the IL check and sent a bill for the remainder and Illinois sent a refund of the overpaid amount. IRS can even adjust a check down in amount if it is made out for too much. I found the authority in the regs several years ago. 3 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted August 31, 2015 Report Share Posted August 31, 2015 Yeah, I've had this happen with MD a couple of times and MD wouldn't even refund the excess since we didn't claim it on the tax return. I had some heated letters back and forth with the Comptroller of MD's office and I think they might be playing nice now, but I encourage all my clients to make online payments now. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted August 31, 2015 Author Report Share Posted August 31, 2015 "I found the authority in the regs several years ago."Thanks good, to know. TP will be issuing a new check to the state and have the IRS apply the credit to his 2014 tax return. MAS 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted September 1, 2015 Report Share Posted September 1, 2015 Ah, but where is the authority for the BANKS to give money to an entity NOT named on the check? If this is so, they have written themselves authority to steal at will. It needs to be repealed/overturned/stopped. If someone sends a check to the wrong agency, they'll just be stuck with late payment penalties and interest. 2 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted September 1, 2015 Report Share Posted September 1, 2015 I have seen the check written to a state, sent to the IRS being stamped with "DEPARTMENT OF TREASURY" over the name written on the check then processed. Intentional Apathetic Ignorant Stupidity cannot be healed. 2 Quote Link to comment Share on other sites More sharing options...
SaraEA Posted September 2, 2015 Report Share Posted September 2, 2015 I had a client who sent both his federal and state balance dues to the state (despite the fact that I had the payment instructions and payment vouchers clipped to separate envelopes. He "lost" them and hand wrote his own.) The state cashed both checks and sent him a refund, and the IRS of course sent him a bill. It was all my fault until he got his bank statement and realized what he did. I'm with Catherine. Why did the bank pay a check to the wrong payee? That's what happens when checks are machine read--only record the numbers I guess. Now if I tried to deposit a check made out to Catherine I'd probably be arrested. 5 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted September 2, 2015 Report Share Posted September 2, 2015 I gave a check to my Grandkids last night because we are making a joint land purchase. He said, "I can deposit this to my account right from my phone!" WHAT??????????? That makes me really nervous. Quote Link to comment Share on other sites More sharing options...
Catherine Posted September 7, 2015 Report Share Posted September 7, 2015 I gave a check to my Grandkids last night because we are making a joint land purchase. He said, "I can deposit this to my account right from my phone!" WHAT??????????? That makes me really nervous.Same as depositing from your computer; take a picture and send it in. HOWEVER -- most phones do NOT have the security on a desktop so I don't recommend this practice. 1 Quote Link to comment Share on other sites More sharing options...
JohnH Posted September 7, 2015 Report Share Posted September 7, 2015 I frequently use my iPhone for depositing checks. Hadn't really given much thought to security problems with it, but I think I'll look into that. Quote Link to comment Share on other sites More sharing options...
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