How Do I Report Uncashed Checks in Texas?
- 1). Treat uncashed checks the same as cash in your business accounting. The Texas Department of Revenue considers check payments as part of your revenue stream. Holding onto a check to try to avoid paying taxes on earned money can be considered a form of tax evasion. The law assumes checks are good and because they are easily convertible, they are considered cash. However, a check that bounces may be deducted from your cash holdings.
- 2). Report uncashed checks you may find to your local police or sheriff's department. Texas law enforcement takes check fraud and stolen money seriously. Officials will try to locate the check issuer and return uncashed checks. When that isn't possible, officers will work with bank officials to cancel checks and in some cases may coordinate with the FBI where check fraud or theft is suspected.
- 3). Contact payees who haven't cashed your check after an extended period. Although it may be uncomfortable, it's important to know if your check arrived safely. Outstanding checks can throw off your bank account balance and a gentle reminder may cause your payee to deposit or cash a check so that payments clear and your account balance is updated.
- 4). Report lost or stolen checks to your bank immediately. If a check has gone uncashed for too long and a payee doesn't respond, cancel the check for safety. Although the bank fees associated with canceling a check can be annoying, safeguarding your money takes higher priority. In cases of stolen checks, your bank may report the loss to Texas law enforcement authorities who may in turn contact your for information and testimony.
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