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Tax Refund Check Processed Without Endorsement

My daughter and her husband filed their taxes in Mississippi while he was on leave from Iraq in January. He is back in Iraq and my daughter is here in Hawaii. The tax check went to my daughter's mother-in-law's house, where the mother-in-law deposited it into a joint account she had with her son (my son-in-law), but my daughter is not a party to the account, and the check was payable to her and her husband. The check was for $5200 and my daughter didn't get any of it. I didn't think it was even legal for banks to deposit checks without all parties either signing the check or being a party to the account into which it was deposited. Where can I find the law regarding this and what course of action can my daughter take to recover her money?


Hopefully, your daughter and her husband can sort this out between themselves, so that she and he are satisfied as to who gets how much of the refund. That's the fasted, and the best, solution.

If the allocation of those funds cannot be handled amicably, your daughter can contact the IRS to tell them she did not receive any part of the check. The IRS will follow up to determine who did in fact receive the proceeds of the check, and can force the bank into which it was deposited to reimburse the IRS for the check it should not have accepted for deposit into the mother/son joint account. All of which should lead, eventually, to a payment being sent in your daughter's direction.

Published on BankingQuestions.com 5/25/07