We had a customer call wanting to "help" out a friend who has no bank account anywhere and has already received a tax refund check from the government. The check is said to be for $5000. The original payee has no I.D. The customer who has an account here and wants to the second endorsement only has $200 in the bank. Can we at least hold this check since its a two-party check, or do we have to let the check have next day availability? Can we refuse to cash the check in this instance?

Can we refuse to cash the check in this instance?

That is what I would do.

Holding it will be of little use as it will most likely be returned (if return is necessary) after the hold is placed. Cashing is or not cashing the check is a management decision. Personaly I would not cash the check as the original payee has no ID. It seem strange that someone who has taxable income (hence the tax refund check) would not have any Id.

I find this strange. The IRS did not start accepting electronically filed returns until Jan 17. And I find it even stranger someone mailed a return and has already gotten a paper check back. Unless it may be one of the tax refund anticipation loans some of the tax preparers do.


http://www.efile.com/tax-refund/where-is-my-refund/

I agree with Dan. Even the H & R Block near my bank has said they don't expect to be issuing checks until the 25th at the earliest.

could be a late filer from last year...could be a state check...doesn't specifically say IRS...

but i'm with Randy...take a pass

We see a lot of fraud involving tax refund checks in the $5k range. We see these checks all year....just saw a few last week. I would refuse the transaction.