Deposit of IRS withholding

[Guest dlm]

A small client requested 2 distribution checks from their investor.

1 for 80% of the acct. balance to participant

1 for 20% as IRS w/holding

The IRS w/holding check is made payable to IRS not to a Fedral Reserve bank.

ANy ideas on how the client can deposit this check payable to IRS along w/tax deposit coupon (8109B)? Will a bank take the check if it's made payable to IRS? Is there an IRS address that will accept the w/holding check and coupon?

thanks for any help

[Guest David Dye]

Check with the bank. If deposited with a Tax Deposit Coupon, the bank will probably accept it.

[Lynn Campbell]

In my experience, the only thing that works is a check drawn on the Bank where deposited, made payable to the Bank and deposited along with the Tax Deposit Coupon with the Plan's Trust ID# used on the coupon.

[Disco Stu]

I have a client whose bank declined to accept their deposit of federal withholding. They have the deposit coupon with the trust's name and id# on it. The money is being drawn from an account at the bank in question.

I am told by my client that the bank declined to accept the deposit because there was no documentation as to which individuals this withholding was for. Based on my limited knowledge in this area, I think the bank is off base here. Isn't that what the 945 is for?

Is there any basis for the bank's position?

The other possibility is that I'm not getting the whole story from my client. Are there other logical reasons why a bank would not accept the deposit?

Thanks for any input.

[Lynn Campbell]

Has anyone mailed the Tax Deposit Coupon and Check to the Federal Tax Deposit Processing office in St. Louis, Mo.? If so, did this agency accept the check? Please advise your experience with mailing the withheld taxes and the address(es) you used for this purpose. It would save my clients considerable time if they did not have to take these deposits to their local bank. Thanks for all input.