Electronic funds withdrawal (EFW)
If you would like to set up automatic payments for your fiduciary clients, you must electronically file their return. An automatic debit from your client’s bank account can occur for the following types of fiduciary returns: Form 1041, amended Form 1041, Form 7004 (extension), or Form 1041-ES (estimated tax payments filed with Form 1041).
important
- Estimated tax payments on an extension are not eligible for EFW.
- Before you transmit the file to the IRS, you can change your EFW information by modifying your data entry, and then re-creating the e-file. If you have already transmitted the return, you can't change the EFW information, per the IRS. You can cancel a payment with the IRS.
- If the return is accepted, the IRS is responsible for withdrawing the payment according to the information included in the e-file. If the return is rejected, the EFW won't take place.
Once you have prepared your client's return and are ready to set up the automatic payments and electronically file, complete the following steps.
- Open the1041Screen in theGeneralfolder and enter the fiduciary's phone number in theTelephone numberfield.
- Select theBanktab and enter the bank account information.noteEFW is not allowed if you mark theNon-US financial institutionfield.
- Open the ELF Screen or ELFExt Screen (extension) in the Electronic Filing folder and indicate the date to have the amount debited from the bank account or one or more quarters for the estimated tax payments to be electronically withdrawn in the properElectronic funds withdrawalfields.noteYou can't choose a date for estimated tax payments to be withdrawn; the dates are determined by the IRS for each quarter.To confirm that your EFW request is present in the filing instructions, go toPrint, thenPreview, and selectFiling InstructionsorEstimate Filing Instructions.
- Prepare the 1041 electronic file.
