From TaxAlmanac, A Free Online Resource
From TaxAlmanac
Discussion Forum Index --> Basic Tax Questions --> Check copies from bank
Discussion Forum Index --> Tax Questions --> Check copies from bank
Crane (talk|edits) said:
| 21 February 2008
|
| Many clients are now receiving pages of (very small,several on a page) copies of cancelled checks from the bank with their monthly bank statement. Does anyone know if these will hold up under audit?
|
Pierce (talk|edits) said:
| 21 February 2008
|
| Would think so. Can request the bank copy front & back, and also enlarge, if you are concerned about it.
|
Crane (talk|edits) said:
| 21 February 2008
|
| I also agree, but the clients are not in an IRS audit right now. The fear is that they will be audited in a later year and the bank will have distroyed the checks because they scan everything. Are you telling your clients to contact their banks and require the bank to return the original checks...again, only in the event that there is an IRS audit, which at some point for some client out there it will happen.
|
Sandysea (talk|edits) said:
| 21 February 2008
|
| Most banks (for a fee) will send in the canceled checks. Because of "free checking" this usually only includes photo copies of the checks, but if you pay to have them sent back, they usually do. Most of my clients I say "pay the 5.00 a month" that way if someone is questioning the check, you have back and front and don't have to ask the bank to go to microfich to find them in a later time...that costs too!!
|
Natalie (talk|edits) said:
| February 21, 2008
|
| I think check copies are sufficient, except in the case of fraud when the endorsement is important. Banks are highly regulated, so I would guess that they are required to keep electronic copies of cancelled checks for at least seven years. You might want to check with your bank to see how long they are required to keep them. (By the way, in a few years we won't see very many original cancelled checks.) You might also want to look at the Check 21 Act, the law that allows banks to digitize cancelled checks. http://www.federalreserve.gov/paymentsystems/truncation/
|
To join in on this discussion, you must first
log in.
