Backdating

Backdating is the practice of marking a document, whether a check, contract, or another legally binding document, with a date that is prior to what it should be. However, there are times when backdating can be acceptable, but the parties involved must agree to it. Consider the following examples of common backdating scenarios that are _not_ allowed: On Dec. 10, a tenant, who has missed his Dec. 5 deadline for rent payment to his landlord, backdates a check to Dec. 4 and submits the check to the landlord. On April 30, a taxpayer, who has forgotten about the April 15 deadline to make a tax-deductible individual retirement account (IRA) contribution for the previous tax year, backdates a check to April 1 and mails the check to her financial advisor. On July 4, a car owner, who did not pay his car insurance premium for July, crashes his car into a parked vehicle while texting. The backdating scheme involved moving the effective date for exercising the options from when the options were 'out of the money' to a date that made the options 'in the money' to allow certain executives to exercise their options profitably. Here are a few examples of situations where backdating _may_ be acceptable: A person wants to buy a life insurance policy and make it effective beginning at a date prior to the current date. Backdating is the practice of marking a check, contract, or other legally binding agreement with a date that is prior to the current date.