Effective Jan. 1, 2016, the IRS will reject any checks received for over $99,999,999.00. Two or more checks will be required, or taxpayers should use Fed Wire to make their payments.
This tax season the IRS deposited 14 checks over the amount that the Federal Reserve banks can process; each of these checks had to be processed manually, according to the IRS.
The Treasury Department has noticed an increase in the submission of large-dollar checks by federal agencies to the Treasury General Accounts over that amount. Since no check-processing equipment can handle amounts over a million dollars, large-dollar items are handled entirely manually. With manual processing the risks of fraudulent activity, processing errors, and uncollectible funds are more likely, the Treasury said in a companion memo.
TGA depositaries will not accept checks over $100 million beginning Jan. 1, 2016, and will return the large-dollar check to the federal agency that attempted to deposit it.
