My husband and I filed a joint income tax return and received a refund check in both our names. We do not have a jointchecking account. We decided to deposit the check into my account at my bank. Even though we presented the check in person for deposit, we were told that banking regulations prohibit them from cashing an IRS return check or depositing it into any account that is not jointly held by both of us. Is that true?
It might be the policy of your bank not to accept the check for deposit, but there is most certainly no bank or federal law or regulation that prevents it. Unfortunately, some banks have gotten overly particular about handling checks that are not payable exactly as their accounts are held. The banks are concerned there might be some liability for an irregular endorsement, and put up procedural walls to eliminate the risk.
Speak with the branch manager or a higher-up to try to get the problem resolved. It may be that you'll have to open a joint account to deposit the check, then move the funds. For the future, if you don't have a joint account, arrange with the IRS to have your refund direct deposited to your individual account. That is acceptable under the IRS's policies, and your bank is much less likely to object.
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It might be the policy of your bank not to accept the check for deposit, but there is most certainly no bank or federal law or regulation that prevents it. Unfortunately, some banks have gotten overly particular about handling checks that are not payable exactly as their accounts are held. The banks are concerned there might be some liability for an irregular endorsement, and put up procedural walls to eliminate the risk.