While many of us expect a check back from the Internal Revenue Service once our taxes are filed, many individuals, as well as businesses, end up owing money to the IRS when tax time rolls around. While the amounts vary, and penalties can oftentimes be assessed, the total amount owed really depends on the way the business is set up.
For those owing an arm and a leg, things may be about to get a little bit more tricky. Most of you reading this likely have never written out a check for anything close to $1,000,000. To those of you who have, congratulations. I am also willing to guess that probably no one reading this has ever written out a check to anyone for over $100,000,000 or have owed anything over $99,999,999.99 to anyone in the past, especially the IRS.
Believe it or not, last year the IRS reported 14 checks, which were deposited into their coffers, exceeding $99,999,999.99. Recently, however, in an uncovered memo sent from the IRS to the U.S. Treasury Department, it was revealed that the IRS will no longer be accepting checks for any amount over $99,999,999.99.
“The Bureau of Fiscal Service (Fiscal Service) of the US. Department of the Treasury has noticed over the past year an increase in submissions of large dollar checks by Federal agencies to the Treasury General Accounts (TGAs) that are over the amount of $99,999,999.00,” explains the memo. “This recent activity has prompted some attention to Fiscal Service’s existing policy on large dollar checks.”
The main issue that concerns the IRS is the fact that they do not have equipment capable of automatically handling such transactions, meaning that staff must manually handle each check. According to the IRS, this leaves the door open for human error as well as fraud, and when dealing with a check of the 9-digit variety, both of these risks could spell major problems.
“Effective January 1, 2016, TGA depositaries will no longer accept checks over $99,999,999.00 for TGA services,” the memo goes on to explain. “The TGA depositaries will be instructed to reject any deposit in OTCnet which contains a large dollar check in the amount of one hundred million or more. The large dollar check will be returned to the Federal agency that attempted to deposit it.”
If a filer owes more that $99,999,999.99, they can either e-file, or opt to send in more than one check, all under the $100 million limit.