Current through Register Vol. 48, No. 38, September 20, 2024
a) There are two primary methods for payment
by electronic funds transfer under the program, along with one emergency backup
method. These methods are ACH Debit, ACH Credit and Fedwire. Taxpayers may use
either the ACH Debit or Credit methods for payment. Taxpayers who are required
to pay or voluntarily pay Cigarette Tax or Cigarette Use Tax using EFT must pay
their tax liability using an ACH debit payment. Fedwire is only offered as an
emergency backup method of payment.
b) Taxpayers who choose or are required to
use the ACH Debit option must use one of the following methods:
1) Place a toll-free call to the Department's
data collection service and provide the appropriate account number and required
tax payment information. The data collection service will then provide the
taxpayer with a unique "confirmation number" to acknowledge the call. The data
collection service will initiate the ACH Debit to the taxpayer's account the
same day the taxpayer calls the Department, except in the case of ACH
warehousing by the data collection service, which will be initiated the working
day prior to the due date, and a credit to the Department's account will be
made the following day. When a taxpayer chooses this payment option, the
Department will provide the taxpayer with a detailed set of technical
instructions related to the payment mechanism.
2) Taxpayers that are purchasing cigarette
tax revenue stamps will not need to place a call to the Department's data
collection service. However, a debit authorization form provided by the
Department must accompany the purchase order invoice. The Department will then
initiate all ACH debits for taxpayers who are required to use EFT when
purchasing cigarette tax stamps and who provide the Department with their debit
authorization.
3) Taxpayers who
electronically file their tax return may include an ACH Debit record with the
transmission.
c) To use
the ACH Credit option, the taxpayer initiates a credit by instructing its bank
to transfer the tax due from the taxpayer's account to the Department's
account. The taxpayer's bank will then insert a "trace number" into the payment
transaction to be used as a payment verification. In addition to the payment
amount, taxpayer account posting information is sent with the funds transfer
using the TXP convention. This is a standard format developed for use by all
states accepting tax payments by means of ACH Credit. A copy of the TXP
convention is provided as a portion of the technical instructions provided to
taxpayers making payment in this form.
1)
Before choosing this option on the registration form, a taxpayer should contact
its bank to determine what ACH services are offered by the bank.
2) This option is not authorized for
taxpayers that purchase cigarette tax stamps.
d) The Fedwire option for payment is offered
by the Department only as a backup method. If this backup method is used, the
taxpayer's bank must initiate the Fedwire by noon Central Standard Time on the
tax due date.
1) Fedwires have costs
associated with them for both the initiator and the receiver. A taxpayer using
this option will be required to pay the initiator's fee, and the receiver fee
will be charged to the Department.
2) To effectively credit the payment
information to the taxpayer's account, the Department's standard Fedwire format
(the Department requires the same data as the TXP convention) information
should be entered by taxpayer's bank as part of the Fedwire transaction. The
taxpayer's bank should provide taxpayer with a paper copy of the transmission
for taxpayer's records. A copy of the Department's standard Fedwire format is
included in the technical instructions provided all program
participants.
3) Fedwire is not a
routine electronic funds transfer option. If a taxpayer uses this emergency
backup option, taxpayer must contact the Department by telephone in advance to
provide notification of the emergency situation.
