Randy's Penalty for Endorsing and Depositing Taxpayer's Refund Checks

What penalty is Randy subject to for endorsing and depositing Taxpayer Y's refund check without proper authorization?

The correct penalty for Randy is:

Randy's Penalty for Endorsing and Depositing Taxpayer's Refund Checks

Randy faces a penalty of $110 for endorsing and depositing Taxpayer Y's refund check without proper authorization, even though he had the authority to endorse and deposit Taxpayer X's refund check due to the Power of Attorney.

The penalty for endorsing or negotiating a taxpayer's refund check without proper authorization is equal to the lesser of $110 or the amount of the refund. In this case, Randy endorsed and deposited both Taxpayer X and Taxpayer Y's refund checks. Since Randy had a Power of Attorney for Taxpayer X but no Power of Attorney for Taxpayer Y, he was only authorized to endorse and deposit Taxpayer X's refund check. Therefore, Randy is subject to a penalty of $110, which is the lesser of the two refund amounts.

Given the scenario described, Randy's actions of endorsing and depositing both refund checks, despite lacking a Power of Attorney for Taxpayer Y, result in a penalty of $110. This penalty is imposed for unauthorized endorsement and negotiation of a taxpayer's refund check.