When handling a federal tax refund check made payable to two parties with one signature, what is the appropriate action?

When dealing with a federal tax refund check made payable to two parties, if only one of the parties presents the check with a signature, the best course of action is to deposit the check for the customer. This is appropriate because banks typically allow checks payable to two parties to be deposited into an account, provided that the account holder endorses the check. By depositing the check, the bank ensures that the funds are allocated correctly and reduces the risk of potential disputes that could arise from cashing the check without the consent of both parties.

In this context, cashing the check immediately would be risky because it may violate the endorsement requirements since only one of the two parties signed. Returning the check to the customer outright would not be helpful, as it prevents the customer from accessing the funds they are entitled to. Splitting the check into two separate transactions is also incorrect because federal tax refund checks are not designed to be divided; they must be processed whole and in accordance with proper endorsement practices. Thus, depositing the check is the clear and appropriate action that aligns with banking regulations and practices.