If a taxpayer receives a substitute
check that is not legally the same as the original check and suffers a loss related to the substitute check, the Check 21 Act provides the taxpayer with a special procedure that can be used for restitution (Check 21 Act, [section]6(a)).
Where's my canceled check?
The new law is a bridge between the old-fashioned paper
check that we use to pay a merchant and the widespread adoption of electronic technologies to collect that check.
Check 21: a step on the path to electronic banking: the Fed envisions a U.S. payments system that is more reliable, faster, and less expensive as check processing becomes primarily electronic, displacing today's methods of processing paper checks. "Check 21" is helping to pave the way
A substitute check is a paper reproduction of the original
check that can be processed just like the original check.
Proposed rule to amend regulation CC
* Parties cannot refuse to accept a substitute check that meets the Act's requirements.
* No party will be asked to make payment based on a check that it has already paid (no double debit).
Substitute Check: A paper reproduction of the original check that:
Check 21 Resource Document
A substitute check is a paper reproduction of the original
check that includes electronically captured images of the front and back of the original check and a reproduction of the check's MICR line.
The future of the check: how Check 21 and emerging technologies will change our payments system
A substitute check is a paper reproduction of the original
check that contains an image of the front and back of the original check and can be processed just like the original check.
Final amendments to Regulation CC and its commentary to implement Check 21 Act
Therefore, a lost
check that was never honored should not be taxable income in the year it was received.
Lost check is income in the year originally received
1967), in which the court held that, for a
check that can be turned into cash immediately (as in this case), the receipt of the check, not the subsequent receipt of cash, is the taxable event.
Erroneous plan distributions and the 60-day rollover period
Although the consumer would not ultimately be liable for the forged instrument, the consumer is nevertheless exposed to risk that was not anticipated and inconvenience resulting from a loan
check that was not requested.
Statements to Congress
When a customer deposits a
check that is returned by the paying bank (because of insufficient funds, for example), the bank in which it was deposited may charge the customer a fee.
Recent trends in retail fees and services of depository institutions