Answer:
Answer by Barbara Hurst:
IRS checks are very specifically payable to both parties, and have the word "and" between the names. That means that both payees must endorse the check in order for the check to be negotiable. If your joint account is also "and" and both parties have to sign the checks written on the account, then you'd be safe using your absence of endorsement guarantee stamp. However, almost all of our joint accounts are "or" accounts, and we honor checks written by either party. It is entirely possible for one of your joint account holders to get the IRS check with the other payee on the check having no knowledge of its receipt. If you were to use the endorsement stamp, in this case, and accept the check with only one endorsement, the other payee can certainly come back to you for his/her portion of the check due them. Short answer - No, you can't use the guarantee stamp if your joint account is an "or" account. Insist on both personal endorsements if the amount and the circumstances warrant it.
Answer:
Answer by Andy Zavoina:
The fear is that at a later date, even years later, one of the payees may claim that they did not receive benefit of the check. The IRS may then collect the funds back from you.
First published on BankersOnline.com 5/7/01
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