Set up electronic funds withdrawal (EFW)
For returns filed electronically, extensions, and estimates, certain state taxing agencies let taxpayers pay balances due via electronic funds withdrawal (EFW).
If a state allows electronic filing for extensions or estimates, they generally allow electronic funds withdrawal requests.
Data entry
To ensure the debit of an electronic funds withdrawal request is successful, enter the following.
- In the federalElectronic Filingfolder, select theELFtab and enterXin theFile the return electronicallyfield.
- In the federalGeneralfolder, select the1040tab and enterDaytime telephone/ext numberin the Taxpayer Information section.
- In the federalGeneralfolder, select theBanktab and enter the bank information. If the fields are grayed out, delete the code in theTaxpayer verified all bank info byfield.noteUltraTax CS considers the bank information you enter in the federal input screens as the primary account and will use that information for all returns attached to the client. If you don’t want to enter bank information for the federal return, or you want to enter different bank information for the state, use theBankscreen in the state input screens.
- In theGeneralfolder of the state input screens, select theBanktab and make sure the bank information is correct. Mark the corresponding box toEnable electronic funds withdrawalfor a balance due return, extension payment, or estimate payments, whichever is applicable. If 1 of these fields isn't available, the state most likely doesn’t accept EFW for that payment type. Refer to the state instructions for details.
- For returns and extensions:
- If you'd like the date of withdrawal to occur before the April deadline, specify a date in theRequested payment datefield. Otherwise, leave the field blank. If you're filing a return after the original deadline, you can't enter a date that's after the date you transmit the return to the agency.
- For estimates:
- For each quarter that you authorize EFW, UltraTax CS enters the standard due date for the state. You can adjust the dates for electronic withdrawal in theRequested withdrawal datefields.note
- While the taxing agency won’t withdraw the payment before the requested date, they may withdraw it after. Regardless of the date the state actually processes the payment, they’ll consider it timely if you request the withdrawal date and submit the e-file on or before the due date.
- The state return won’t default to electronically withdraw payments if an EFW request is present on the federal return.
- Some states let you force the amount to be paid with EFW. If you force an amount to be debited, it can't exceed the balance due as shown on the return. An amount that exceeds the balance due will be rendered invalid and won’t be included in the electronic file.
- State taxing agencies can't process international ACH transactions (IAT). If you check theNon-US financialfield on theBankscreen, UltraTax CS suppresses the direct deposit or electronic funds withdrawal.
