We are having the following Anniversary Special for one of our Branches. "Open a new "Totally Free Checking Account" (non interest bearing) with a minimum deposit of $100, direct deposit of paycheck and free debit card and we will give you a $25 gift card." Would the $25 gift card be reported as a 1099 Int. or 1099 misc? Why?
Can you allow funds payable to someone to be deposited in an account that they have no ownership or withdrawal rights? What reg covers this? We have customers ask us to deposit checks payable to "John Doe" into account for "Jane Doe" where Jane is the only owner/signer. We always explain to them that we do not allow it because John would not be able to withdraw the funds and we do not want to take a chance on John holding the bank liable because he did not receive benefit of the funds. There is often a suspicion that John is trying to hide the funds from the IRS or because of legal judgments. We would like to know which regulation or act specifically addresses this so we can have a basis for our policy. Does this fall under money laundering under the BSA?
What kind of documentation is needed to show that an organization is non-profit?
Is an IRS Levy considered a Garnishment by the United States, or is a Writ of Garnishment by the United States simply when the US is the creditor? In other words, do IRS levies fall under the new rule?
We have a new teller that cashed a $11,500 check for a non-customer. She verified the customers ID and got all the required information for the CTR except for his SSN. We have called the individual and he refuses to give us the SSN. How do I proceed with the CTR and is a SAR necessary?
I have a question with regard to Reg CC and the ever changing environment of delivery methods and new accounts. The local tax firms such as H & R Block, Joseph Hewitt, etc. are providing tax refunds via a debit card. The way I understand from a manager of H & R Block, the tax forms are submitted to the IRS for review. Once the IRS approves it and releases the funds to H & R Block, the funds are then captured on a secured server and transferred to the debit card. This would be done by H & R Block. The customer gets this card in the mail. Their PIN is the last 4 digits of their SSN. Their customer is told they can access the cash at any ATM. If we have a new customer to the bank who wants to open an account, and they present one of these debit cards to have the balance on their card as their opening deposit, would that transaction be considered a Next Day Item/Electronic Payment? For us to access the funds, we would have to process it like a Cash Advance, typically a type of transaction done with a credit card. I am thinking it would be an electronic payment, even though there is some manual process to it. Would that be correct? I know the debit card is a substitute for the check, but again to access the funds, we have to go through an electronic medium to get them. We would get an approval code on the machine and record it in our paperwork. With a Cash Advance, once we get that approval, it authorizes our bank to pay the funds. We can then deposit it to an account or give the customer cash. It would be the same process with a debit card.
Is a W-8Ben required when opening a non-interest bearing account for an Non-Resident Alien?
Our customer is over 70.5, with a 36 month IRA CD maturing in 2013. We will not charge a penalty on the RMD, but the customer thinks because he is over 70.5, there should not be a penalty if he moves it out before maturity. Are we correct in thinking that the age is not a factor in this situation?
Is an EIN required to open an account such as a class reunion account, or is it ok to use the SSN of the signer?
When a customer is going to be overdrawn on their account, can the bank make the decision to pay some items for a customer and return others? I was under the impression that you pay all items or return them all, that we don't have the right to choose which items to pay.