I have an out of state check for $20,000 from an insurance settlement. I cannot go to one of that bank's branches in NE since I am in CA. I owe a bit of money to the IRS, and have a structured payment schedule with them. Is it OK to deposit this check into my personal account? Will the IRS attempt to take the full sum that I owe if I deposit it? What are my options?
If you have a working schedule of payments with the IRS and you're adhering to it, the IRS won't escalate its enforcement by levying funds from your account, but if you miss payments on your schedule, the IRS could investigate and determine you've got funds in the bank, and levy against them. You should also know that your bank won't report the fact of your deposit to the IRS if it's in the form of a deposited check.
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If you have a working schedule of payments with the IRS and you're adhering to it, the IRS won't escalate its enforcement by levying funds from your account, but if you miss payments on your schedule, the IRS could investigate and determine you've got funds in the bank, and levy against them. You should also know that your bank won't report the fact of your deposit to the IRS if it's in the form of a deposited check.
