Arbitration

[Excel915]

I deposited a check in my brokerage account and now I can't get the letter needed from the IRS or for them to recall the payment. What am I looking at if go the arbitration route? Should I sue?

 

[Just Blue]

I deposited a check in my brokerage account and now I can't get the letter needed from the IRS or for them to recall the payment. What am I looking at if go the arbitration route? Should I sue?

What state?

 

[quincy]

I deposited a check in my brokerage account and now I can't get the letter needed from the IRS or for them to recall the payment. What am I looking at if go the arbitration route? Should I sue?

Please explain more fully what you are talking about. Thanks.

 

[Excel915]

Please explain more fully what you are talking about. Thanks.

I received my 2020 taxes via check in my P.O. Box on 12/31/2021. I mobile deposited the check and on 01/03/2022 my account has been restricted or frozen by the brokerage firm. At first they were requesting a gold medallion stamped letter from the IRS instructing them to release the funds to me. Then after filing a BBB complaint they stated they only want a letter from the IRS telling them to release the funds to me. The IRS does not issue or generate any sort of letter and if they do a check trace and see that the refund was already posted. They cannot request the money unless I state to them that I didn't sign the check. Which then it would be considered fraud. I filed a complaint with SEC and they advised me to go through FINRA arbitration. It's been a month of going back in forth between Fidelity and the IRS and my account is still restricted.

 

[quincy]

I received my 2020 taxes via check in my P.O. Box on 12/31/2021. I mobile deposited the check and on 01/03/2022 my account has been restricted or frozen by the brokerage firm. At first they were requesting a gold medallion stamped letter from the IRS instructing them to release the funds to me. Then after filing a BBB complaint they stated they only want a letter from the IRS telling them to release the funds to me. The IRS does not issue or generate any sort of letter and if they do a check trace and see that the refund was already posted. They cannot request the money unless I state to them that I didn't sign the check. Which then it would be considered fraud. I filed a complaint with SEC and they advised me to go through FINRA arbitration. It's been a month of going back in forth between Fidelity and the IRS and my account is still restricted.

Did you intend to deposit the tax funds in your brokerage account? What was the date on the check?

 

[zddoodah]

I received my 2020 taxes via check in my P.O. Box on 12/31/2021.

No you didn't. Taxes are something you pay, so you didn't "receive[]...taxes." I assume you're talking about a federal income tax refund. Correct?

my account has been restricted or frozen by the brokerage firm.

Why?

Why would the IRS care about this dispute between you and your brokerage company? If, in fact, this was an income tax refund, then the IRS's involvement ceased when it issued the check and you deposited it and the check was paid.

How much $$ are we talking about?

 

[quincy]

There appears to be more involved with this check and the brokerage account than you have disclosed. Is the check made out to you? Did you endorse it?

The BBB has no legal authority to do anything, by the way. The BBB attempts to resolve disputes by contacting both parties to a dispute but that is all they can do. The only incentive that a business might have in responding to and finding a resolution for a BBB complaint is to maintain a good business reputation. However the BBB often will not lower the rating of a business that is a paying BBB member.

 

[Excel915]

They were supposed to direct deposited into another account a checking. They instead issued out a check. The bank wouldn't allow me a mobile deposit over 5,000.00 so I called Fidelity and asked them if I could and if there would be any issues and was told it will take 3 to 5 business day for it to clear and then I could transfer any money. They restricted my account on the 3rd and when I spoke with them they were questioning me as to why I am getting a refund check so late. I explain them because of an audit. That when they processed to tell me that they needed a letter from the IRS.

 

[Excel915]

There appears to be more involved with this check and the brokerage account than you have disclosed. Is the check made out to you? Did you endorse it?

The BBB has no legal authority to do anything, by the way. The BBB attempts to resolve disputes by contacting both parties to a dispute but that is all they can do. The only incentive that a business might have in responding to and finding a resolution for a BBB complaint is to maintain a good business reputation. However the BBB often will not lower the rating of a business that is a paying BBB member.

I'm the only person named on the account with the brokerage firm and the check was made out to me. The fraud department froze the account. There is no fraud going on. That's the baffling issue for me.

 

[quincy]

They were supposed to direct deposited into another account a checking. They instead issued out a check. The bank wouldn't allow me a mobile deposit over 5,000.00 so I called Fidelity and asked them if I could and if there would be any issues and was told it will take 3 to 5 business day for it to clear and then I could transfer any money. They restricted my account on the 3rd and when I spoke with them they were questioning me as to why I am getting a refund check so late. I explain them because of an audit. That when they processed to tell me that they needed a letter from the IRS.

I'm the only person named on the account with the brokerage firm and the check was made out to me. The fraud department froze the account. There is no fraud going on. That's the baffling issue for me.

Thank you for the further explanation.

So Fidelity believes the check is fraudulent and is asking you to provide proof that it isn’t.

Do you have a problem submitting your tax information and your communications with the IRS about the audit and refund to Fidelity?

 

[Excel915]

What state?

Florida

 

[Excel915]

Thank you for the further explanation.

So Fidelity believes the check is fraudulent and is asking you to provide proof that it isn’t.

Do you have a problem submitting your tax information and your communications with the IRS about the audit and refund to Fidelity?

I have the check still, my tax information and transcripts. They are refusing to acknowledge them. The IRS even themselves said all they could do is mail a copy of the transcripts. They refuse to acknowledge it. They want a letter or for the IRS to recall an already posted check. And if I sign off documents with the IRS stating that I didn't sign the check I could be facing fraud with the IRS.

 

[quincy]

I have the check still, my tax information and transcripts. They are refusing to acknowledge them. The IRS even themselves said all they could do is mail a copy of the transcripts. They refuse to acknowledge it. They want a letter or for the IRS to recall an already posted check. And if I sign off documents with the IRS stating that I didn't sign the check I could be facing fraud with the IRS.

The problem was because you failed to sign the check ... so now you could conceivably cash or deposit the check again. Right?

Fidelity wants to know that you haven’t tried to deposit or cash the check more than once.

Have you gone in person to Fidelity to try to fix the issue?

 

[Zigner]

Deposit it somewhere else and tell Fidelity to not process the deposit.

 

[PayrollHRGuy]

I have the check still, my tax information and transcripts. They are refusing to acknowledge them. The IRS even themselves said all they could do is mail a copy of the transcripts. They refuse to acknowledge it. They want a letter or for the IRS to recall an already posted check. And if I sign off documents with the IRS stating that I didn't sign the check I could be facing fraud with the IRS.

Your Fidelity account has been frozen you say. But has the deposit been credited to it? If not, deposit the check, in person, to your other bank account and tell Fidelity to ignore the deposit.