October 2025

With recent IRS payments now being processed, taxpayers are encouraged to review their bank statements to ensure that checks to the IRS have cleared properly. Instances of check fraud involving IRS payments have become increasingly common, with reports of mailed checks being intercepted, altered, and deposited by unauthorized parties.

Under California Commercial Code § 4406, account holders must exercise reasonable promptness in reviewing their statements and notifying their bank of any unauthorized signatures or alterations. Generally, customers have 30 days from the date the statement and items are made available to report discrepancies. Failure to do so may preclude recovery of losses resulting from altered or forged checks.

Recommended Steps

-Review your recent bank statements for all IRS check payments.

-Confirm that checks were negotiated for the correct amount and payable to “United States Treasury.”

-Report any irregularities to your financial institution immediately.

-Consider utilizing E-Checks or other electronic transfer options for future payments to avoid the risk of stolen checks entirely.

Timely review of your account activity is an important step in preventing fraud and preserving your rights under California law.

This publication is for informational purposes only and does not constitute legal advice.

For specific guidance, and more information please contact Peter Haber.

phaber@gibbsgiden.com

310-734-3334

Peter’s practice focuses on business and real estate transactions, entity formation, contract review, business litigation, and HR/employment counseling. Peter represents clients in transactional and commercial matters for a range of businesses and individuals including real estate developers, general contractors, subcontractors, design professionals, as well as food companies, tech start-ups, and medical professionals. Peter has negotiated commercial construction contracts and represented both owners and contractors in such transactions. He has experience negotiating various debt and equity instruments, loan workouts/restructuring, and partnership/operating agreements, including the successful resolution of partnership disputes and partnership buyouts (while avoiding litigation).

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