Frequently Asked Questions

Q: What is Electronic Funds Withdrawal - Direct Debit or ACH Debit?

A : Electronic Funds Withdrawal is an ACH Debit process. ACH Debit stands for Automated Clearing House Debit.

This method of payment is not new in our day to day affairs. Many people use this method to make their insurance premium payments, mortgage payments, car payments, etc.  It may be known as 'direct payment out of the checking account', 'direct debit', 'automatic payments out of the account', etc., and eliminates the hassle of writing and mailing checks, and the embarrassment of forgetting to mail bills on the proper due dates.

If  you have a balance due (amount you owe) to the Government in relation with your Personal Income Tax Return, you are able to pay your taxes by Electronic Funds Withdrawal from your bank or financial institution account. Some of the states that allow electronic filing will also accept Electronic Funds Withdrawal-Direct Debit method of payment. For instance, California FTB obligation may be paid in this manner.

US Treasury Terms and Conditions Income Tax Payment by Debit

explains the United States Government's Terms and Conditions for this method of payment. Upon review of this document, if you understand and agree with these terms, and if you wish to use this method of payment, you may exercise the option for the payment of your tax balance, if any.   If you should choose this method in association with your online filing, you will need to sign special jurat and consent forms.

SAMPLE CONSENT TO DISCLOSE & JURAT

Under penalties of perjury, I declare that I have examined this return, including any accompanying statements and schedules and, to the best of my knowledge and belief, it is true, correct, and complete.

Consent to Disclosure
I consent to allow my Intermediate Service Provider, transmitter, or Electronic Return Originator (ERO) to send my return/form to IRS and to receive the following information from IRS: 1) acknowledgment of receipt or reason for rejection of transmission; 2) refund offset; 3) reason for any delay in processing or refund; and, 4) date of any refund.

I authorize the U.S. Treasury and its designated Financial Agent to initiate an ACH debit (electronic withdrawal) entry to the financial institution account indicated for payment of my Federal taxes owed on this return and/or a payment of estimated tax. I further understand that this authorization may apply to subsequent Federal tax payments that I direct to be debited through the Electronic Federal Tax Payment System (EFTPS). In order for me to initiate subsequent payments, I request that the IRS send me a personal identification number (PIN) to access EFTPS. This authorization is to remain in full force and effect until I notify the U.S. Treasury Financial Agent to terminate the authorization. To revoke a payment, I must contact the U.S. Treasury Financial Agent at 1-888-353-4537 no later than 2 business days prior to the payment (settlement) date. I also authorize the financial institutions involved in the processing of the electronic payment of taxes to receive confidential information necessary to answer inquiries and resolve issues related to the payment.


With Self Selected PIN
I am signing this Tax Return and Electronic Funds Withdrawal Consent, if applicable, by entering my Self Select PIN below.
Without Self Selected PIN-Regular OnLine
I am signing this ACH Debit Consent by entering my date of birth below.

 

The states may use the same or similar consent statements.

 

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