I know there is no requirement for banks to review all ACH transactions to ensure the payees match, but if we notice that an IRS tax refund or stimulus money is going into an individual account made to joint payees, are we covered because of the authorization given for the deposit at the time the refund was given?

Our concern is that if husband has a checking account with us and he comes in with a paper tax refund check made to him and his wife....we would not allow that to be deposited into his individual account without his wife being aware because she could claim she didn't have access to her funds.

Just want to make sure the bank should not return these items if all payees don't match.

In the event of a paper check for a joint refund, the check will be issued in the form JOHN DOE & MARY DOE, and will require both payees' indorsements for deposit to John's or Mary's individually-held account (you could accept it without indorsement to John and Mary's joint account). You want to stick with the indorsement requirements here or risk an indorsement claim months in the future.

With direct deposit of a joint refund, a bank can reject the payment if it's going into an account of only one of the identified beneficiaries of the refund. But the bank can also allow the direct deposit to post based on the IRS having both spouses' signatures on the return authorizing the direct deposit. If each spouse has his/her own individual account in your bank or at different banks, they can tell the IRS to split the refund between the two accounts. Last time I looked, the IRS also cautions joint filers that a bank may reject a direct deposit of a joint refund to a single-ownership account.

For whatever it's worth, I would let these direct deposits post if the account is held by one of the joint filers. Refunds are going to be delayed enough already this year without making someone wait for their money because their bank didn't want to accept a joint refund into an account held by only one of the spouses. But that's just my opinion. Your bank should have a policy one way or the other and follow it.

Hoping to revive this conversation. Check is payable to Mickey Mouse and Minnie Mouse. Minnie brings in the check to deposit into her single party account. There are two signatures on the back of the check. Mickey also has an account with us so we could verify his signature. Would you deposit said item without speaking with or witnessing Mickey signing the check?

If you are happy with his endorsement, it would be a business decision to require anything else.