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What they may send you is a small copy of the front of your check with your statement. The IRS has had no choice but to accept this.
The problems that can develop are when the reverse side of the check is encoded with document locator numbers that many government and commercial entities put on the back. Should you have a payment misapplied, the “D/L” number is crucial.
Even worse, there are some banks who do not even send back a copy of the checks with your statement. If you need to prove a payment, it will cost you $4.00 per check. If you are audited, the IRS will most likely want to see the entire year’s checks - both personal and business. The cost could be staggering at $4.00 per check. We have also run into two banks that sometimes can’t even find their microfilm - leaving the taxpayer dangling in the wind.
We cannot stress firmly enough that you must have copies of your checks (not carbon’s, but negotiated checks) in your banking file, in the unlikely event you are challenged
If your bank does not offer copies of the face of your check with your statement, you seriously need to think about getting a more business friendly bank.
Another issue is fraud. Unscrupulous employees can make checks out to someone other than themselves, and negotiate the check themselves.
In the end, Congress has opened yet another can of worms by tinkering with a system that wasn’t broke, but caved into the banking lobby.
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