Rule on Depositing SS Check into Taxpayers Account

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Question:

We know that tax refunds should not be deposited into an account that does not belong to the taxpayer. Are Social Security checks the same way, and are direct deposits for payroll the same?

Answer:

It's never a good idea to accept a deposit of funds belonging to Party A for deposit to Party B's account. The exception, of course, is when Party A has endorsed the check over to Party B in an ordinary business transaction (check cashing at the supermarket, etc.). A bank should never knowingly accept direct deposits of payments for Party A into an account of Party B.

First published on BankersOnline.com 3/12/12