pixel_a_ted wrote:
- quote -

You mean you have to pay $10/month to get cancelled checks?!! I'd
switch banks immediately!

- quote -

I'd go with this option. But if you really insist on keeping physical
copies, there are still banks that return physical checks for no
additional fees. Or at least electronic copies for free. Shop around.

"dapperdobbs" <GeorgeCFL[at]hotmail.com> wrote in message
news:1142595581.846569.91570[at]u72g2000cwu.googlegroups.com...
- quote -

Take a column from msnMoney FWIW:
http://moneycentral.msn.com/content/Banking/P50242.asp

"The IRS agent could demand actual canceled checks ...

"Under normal circumstances, the IRS has three years from the day you file
your return to audit you. If the agency suspects you've underreported
income, that statute of limitations grows to six years. If fraud is
involved or you don't file a return, there is no time limit on when the IRS
can come after you."

I'm pretty sure the time line is correct, though I won't vouch for whether
the IRS really wants the physical checks.

--
Mark Freeland
nNeEwTs[at]sonic.net

dapperdobbs wrote:
- quote -

That is absolutely true. Banks used to be in the boring business of
borrowing money at X% and loaning it out at something higher than X%.
They still do that, of course, but fee income has been creeping up every
year at the major banks. Especially as short- and long-term interest
rates get so close - the margins have gone out of lending so they nickel
and dime you instead. Citibank charges a fee to deposit coin
money...think of that!

So far they seem to get away with it without losing customers. But I
think it's going to backlash eventually. It's similar to Blockbuster
where the annoying late fees represented a sizable part of their
profitability. Then along came Netflix and poof, that's the end of that.
I guess that makes the high-service, low-fee regional banks, or the
credit unions, the Netflix of the banking industry. Best thing to do is
take your money out the door, and look for a local/regional bank (or a
credit union) that doesn't charge these fees. They don't make bad
investments either =)

-Tad

Good Morning,
I belong to local credit union here in Middle Georgia. We have access to
our account electronically as well as a walk-in. If I go to my on-line
account I can electronically see the canceled checks,front & back, and
print if needed. You may want to see if your bank offers this.

cil





"pixel_a_ted" <pixel_a_ted[at]yahoo.com> wrote in message
news:1142555726.769542.92620[at]j33g2000cwa.googlegroups.com...
- quote -

Good question. The IRS as far as I know requires that you keep record
for up to three years. Other payment questions would probably depend on
the statutes of limitation applying, if a legal action were initiated.
I have had the same question, and solved it by maintaining a minimum
balance at the bank - in exchange for which they return checks free of
charge, with the exception that only facsimilies of business-process
checks are returned.

The logic behind all this no-more-cancelled-checks routine is that it
is cheaper to destroy them, and the technology exists to provide
copies. I have not looked at banks' 10K's (annual report filed with the
SEC) recently, but have heard that banks are moving towards making
money from fees. I have noticed many fees have significantly increased.

If you're married and run into a divorce, the time frame covered is the
entire marriage.

My bank has slowly been increasing the fee for returning canceled
checks with the checking account statement. It's now up to $10 a month,
which is definitely getting my attention. If you don't get the canceled
checks back, you can order a specific check image for a small fee. I
would not mind that, but the catch is that you can only do this for
checks cashed within the past 5 years.

Since I think most people at this bank are not paying to get their
canceled checks back, I am wondering if I am being too cautious. I'm
just concerned that if for some reason something came up where I had to
prove a payment from more than 5 years back, I would have no way of
doing it (the checking account statment just lists the check number and
the amount, not the payee).

Is there some law that governs how many years back one would be
required to prove payment? How about the I.R.S. and the payment of
taxes?

Thanks.