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#38316 - 10/22/02 09:03 PM TT&L payments
Anonymous
Unregistered

Would you accept a transit check( not drawn on your bank) for TT&L payments?
Is there a law or regulation says that we cannot accept them?
Thanks!

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General Discussion
#38317 - 10/22/02 09:24 PM Re: TT&L payments
Anonymous
Unregistered

We might accept one as an exception to our general policy. This would be a decision authorized by an officer after verifying the item. Hopefully, the officer would work with the customer to prevent a recurrence of the situation (and maybe suggest they get set up for automatic payments via the government's FTPS system).

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#38318 - 10/22/02 09:39 PM Re: TT&L payments
Al Miller Offline
Diamond Poster
Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
What are you going to do if the check bounces? It is payable to your bank, not payable to the Treasury.

On the other hand, I seem to remember that if someone comes in with a properly completed IRS form 8109 (I think that is the number of the blue printed form) and CASH, that you have to take it as a "U S Depository."
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Opinions expressed are my own and not necessarily shared by my employer.

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#38319 - 10/22/02 09:43 PM Re: TT&L payments
Anonymous
Unregistered

Why would you want to take a transit item? The Fed is going to charge you immediayely before your funds are collected and you have no recourse if the item comes back. If this person trying to pay their tax is a customer who has a good relationship with the bank you may consider taking their not on us item with the understanding that you will charge it against their account should the item be returned.

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#38320 - 10/22/02 09:49 PM Re: TT&L payments
NMB Offline
Gold Star
Joined: Jun 2002
Posts: 255
Southeast Michigan
A very long time ago, when I was responsible for TT&L deposits, the Treasury required that we make a reasonable effort to collect a returned check, but they would reimburse us if we documented that we had made an effort. (You are acting as their agent.) I no longer have any idea where to steer you for documentation of this and I am not sure it is still true.
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#38321 - 10/23/02 12:16 PM Re: TT&L payments
Neytiri Offline
Platinum Poster
Neytiri
Joined: Jul 2002
Posts: 645
Pandora
We only take foreign checks for TT&L payments for customers that we know and know their checks will clear OK. We have had a spot of trouble in the past when we took foreign checks and they were returned NSF so that is why we changed our policy.

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#38322 - 10/23/02 12:32 PM Re: TT&L payments
CloudShape Offline
Platinum Poster
CloudShape
Joined: Oct 2002
Posts: 525
Edge of Sanity
I don't believe there is any federal regulation, but it is written in our policy we will accept only on-us checks. Exceptions need management approval. It does eliminate the need to chase down nsf transit checks.
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#38323 - 10/23/02 12:45 PM Re: TT&L payments
I Wear Many Hats Offline
Platinum Poster
I Wear Many Hats
Joined: Mar 2001
Posts: 591
the beautiful state of ME
We do not - we only take on-us checks, cash or will make a withdrawal from an account at our bank. If they have a savings with you but not a checking that might be an option - deposit the transit check and withdraw the necessary funds for the payment.

Opinions are mine and mine alone.
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#38324 - 10/23/02 01:00 PM Re: TT&L payments
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
The whole idea behind getting involved with TT&L is to have the use of the funds between the time of tax deposit and the time you send the funds to Treasury. Accepting uncollected funds defeats that purpose and therefor, any monetary benefit to the bank for performing that service disappears. Also, once you wire the funds to Treasury, try getting them back. It's not an easy task.
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#38325 - 10/26/02 04:13 PM Re: TT&L payments
VMack Offline
Platinum Poster
Joined: Jun 2001
Posts: 846
Texas
The Laws and Regulations that govern these type of payments are detailed in the Federal Reserve's Operating Circular #9. The circular and other information concerning this service can found at this site
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CRCM

“The wise know their limitations; the foolish do not.”
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