The Solution to Check-Cashing Problems

A message from Executive Director Tracy Egan

(First posted August 2011)

Dear Awards Recipient,

It has come to our attention that many banks have adopted new policies that make it difficult to cash or deposit Fund award checks made out to more than one person.

The Fund has had a “one horse, one check” policy in effect for decades, and we will continue that policy. We do not have the resources to divide checks up among various individuals.

Here are some steps we recommend to avoid future problems (a message posted on our website and sent out via e-mail blast):

Partners should designate/re-designate a managing partner for tax matters. Please send us a letter with notarized signatures from all partners showing that they are in agreement on the managing partner. For your own protection, you should have a document in writing that spells out what percentage each partner owns.  A form for this purpose can be found on our website here.

Checks will be made out in the name of the managing partner, who should then be able to deposit awards checks without difficulty. Visit our website for a downloadable form for this purpose. W-9 forms can be found through our home page by clicking on Registration Forms/Online forms.

The managing partner will be responsible, as they presumably are already, for distributing the proceeds in accordance with the partnership/syndicate agreement.

At the end of the year, the tax matters partner will have to supply IRS 1099 forms to the other partners or other members of a syndicate, notifying the IRS of the amounts paid out to the partners for that tax year. We will still provide a 1099 to the tax matters partner for each horse he/she manages.

To recap, we need a notarized letter signed by all partners agreeing to a designated tax matters partner. The letter can be filed via e-mail or fax, or sent by regular mail to our offices.

We will review the letter, make the necessary changes to our awards system, and send confirmation thereof.

Feel free to contact Michael DeMarco or Judith Spadaro at 518-580-0100 with any questions you may have.

NYS Thoroughbred Breeding and Development Fund fax: 518-580-0500

e-mail: mdemarco@nybreds.com

Mailing address:

NYS Thoroughbred Breeding and Development Fund Corporation

19 Roosevelt Dr. – Suite 250

Saratoga Springs, NY  12866

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