If we receive a "Notice of Freeze" from Department of Revenue to freeze the funds for X amount and later a check is received (after funds have been frozen)which is the correct reason to return that check: Account Frozen or Refer to maker. Your thoughts would be appreciated. Thanks

How about NSF? If you are holding x funds and there isn't enough to cover the check isn't it NSF? (I am assuming that if the funds were there you would pay the check.) Of course, if you use NSF expect to see the check represented in a few days. Otherwise, I would go with the "Refer to Maker" as you shouldn't be disclosing that the acocunt is frozen. Those are just my thoughts. I am not a lawyer.

I was thinking there was a reason like - No Collected Funds - or am I dreaming that one?

Uncollected, or No Collected, Funds isn't accurate, either, since the true reasons you're returning the check has nothing to do with the collection of items deposited to the account. I agree that "Account Frozen" is inappropriate because it simply is TMI (too much information).

I despise the use of "refer to maker" although may be the least problematic "legend" for the returned check. My personal preference here is "insufficient funds," because that's what you have unless/until the account block is lifted.