Frequently Asked Questions
Q: What is Electronic Funds Withdrawal - Direct Debit or ACH Debit?
A : Electronic Funds Withdrawal (EFW), or Direct Debit is a way to pay your tax liability directly from your bank account using the ACH, or Automated Clearing House banking network.
With this method you can instruct the Government to debit your account for your tax payment at the same time you file your return. There is no fee imposed by the Government or FileYourTaxes.com for direct debit payments.
When filing a Form 1040 Personal Income Tax Return, Form 4868 Application for Automatic Extension, or a State tax filing with a balance due, as you finalize the tax return filing, the System will ask if you want to pay using a
Credit Card, or Direct Debit. If you select Direct Debit, you will be asked to enter information about your financial institution. The information can be obtained from official financial institution records, account cards, checks or share drafts that contain the taxpayer’s name and address. It is recommended that you check with your financial institution to confirm this information.
You will need the following information to complete the Electronic Funds Withdrawal transaction:
|Routing Transit Number (RTN)
||The first two digits of the routing number must be 01 through 12 or 21 through 32. Do not use a deposit slip to verify the number because it may contain internal routing numbers that are not part of the actual routing number. On the sample check below, the routing number is 250250025.
|Bank Account Number (DAN)
||The account number can be up to 17 digits. Omit hyphens, spaces, and special symbols. Enter the number from left to right and leave any unused boxes blank. On the sample check below, the account number is 20202086. Do not to include the check number.
|Type of Account
||The type of account can either be savings or checking. Many credit unions don't allow an electronic funds withdrawal from a savings account. Please check with your financial institution for further details.
|Amount of Tax Payment
||Enter the amount you want withdrawn from your bank account. Payments should be in whole dollars.
- Be sure that your financial institution allows EFW requests from the designated account. Some credit unions do not permit direct debits from share accounts.
- The Government generally confirms receipt of the payment. It is recommended that after your filing is accepted you check your eFile status. On the eFile status page, confirmation of payment will appear on the screen and you can verify the payment details.
- Submitting an Electronic Funds Withdrawal authorization authorizes the US Department of the Treasury, State, or other Government Agency to transfer the payment amount from the specified bank to the Government's account.
- A transaction will be shown on your bank statement as proof of payment. For IRS payments it may appear as "IRS USA Tax Payment," or "IRS USA Tax Pymt."
- If the payment date requested is a weekend or bank holiday, they payment will be withdrawn on the next business day. In that case the bank may put a hold on those funds and treat it as a pending transaction.
- The payment amount will be debited in a single transaction. No recurring or partial withdrawals will be made.
Cancellation, Errors, and Questions
- If the return is rejected, in addition to other required corrections you need to make, simply correct the routing or account number and resubmit the return to the Government.
- Once your return is accepted, information pertaining to your payment, such as account information, payment date or amount, cannot be changed. If changes are needed, the only option is to contact the Government agency.
- In the event your financial institution is unable to process your payment request, you will be responsible for making other payment arrangements, and for any penalties and interest incurred.
- For federal payments,
- IRS e-file Payment Services at 1-888-353-4537 to inquire about or cancel a payment, or to report problems such as bank closures, lost or stolen bank account numbers, closed bank accounts, or unauthorized transactions. If calling to inquire about your payment, IRS recommends that you wait 7 to 10 days after your return was accepted before calling.
- Cancellation requests must be received no later than 11:59 PM ET two business days prior to the scheduled payment date.
- If a payment is returned by your financial institution (e.g., due to insufficient funds, incorrect account information, closed account, etc.) the IRS will mail a notification letter to the address we have on file for you, explaining why the payment could not be processed, and providing alternate payment options. For questions regarding the letter, please call 1-888-353-4537.
- Contact the IRS immediately at 1-800-829-1040 if there is an error in the amount withdrawn.
- In the event Treasury causes an incorrect amount of funds to be withdrawn from a bank account, Treasury will return any improperly transferred funds.
- For state payments, please contact your state revenue agency
If you choose this Electronic Funds Withdrawal to pay your federal tax liability, you will need to sign a jurat and consent form. The states may use the same or similar consent statements. An example of the Federal Electronic Funds Withdrawal Consent is below.
Electronic Funds Withdrawal Consent
If applicable, I authorize the U.S. Treasury and its designated Financial Agent to initiate an ACH electronic funds withdrawal (direct debit) entry to the financial institution account indicated in the tax preparation software for payment of my Federal taxes owed on this return and/or payment of estimated tax, and the financial institution to debit the entry to this account. 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 (cancel) 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.
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