Features and Benefits of Electronic Funds Withdrawal:
- It's convenient. Taxpayers and business filers can e-file and e-pay in a single step.
- It's free. Although there are no service charges for using the payment option, please check with your financial institution about any fees it may charge.
- It’s safe and secure. Payment information will be used only for the tax payment(s) authorized by the taxpayer. No unauthorized withdrawals will be made.
-
Bank account information is safeguarded along with other tax information.
- Payment information will not be disclosed for any reason other than for processing the transaction authorized by the taxpayer.
- Form 1040 series, Form 1120 series, Form(s) 2350, 4868, 7004, 8868 and 990-PF can be e-filed early and, at the same time, have an Electronic Funds Withdrawal (EFW) scheduled for settlement from a bank account on a future date, up to and including the return due date.
-
For Form(s) 720, 940, 941, 944 and 2290 the electronic payment will be effective (i.e., settled) on the date the return or form is e-filed.
- After the return due date, the effective date for all payments will be the same as the date the return or form is filed.
- Up to four Form 1040-ES payments for TY 2009 can be submitted with the TY 2008 e-filed return, regardless if the TY 2008 return has a balance due or not.
- A separate payment record is required for each estimated payment.
- The bank account information can be the same or different for each payment entered.
How to Make an Electronic Funds Withdrawal Payment:
- This payment option is available through most tax preparation software and tax professionals.
- Upon selection of the electronic funds withdrawal option, a payment record will display for entry of payment information (see EFW Payment Record Item and Instructions table below).
- Taxpayers must know their financial institution's routing transit number and account number.
- Taxpayers must identify the type of account from which the payment is to be made (checking or savings).
- The routing transit number and account number are usually located at the bottom of checks and share drafts.
- Taxpayers should check with their financial institution if there are any questions regarding these numbers and to confirm that the financial institution will allow an electronic withdrawal from the specified account. The majority of rejected payments are due to issues with the routing transit number and/or account number.
- Check your tax preparation software to determine if partial payments are allowed via EFW. A single payment cannot equal or exceed $100 million.
- Penalty and/or interest can be added to, and paid with, the balance due on the return. Some software packages will compute these amounts; and if not, they can be computed manually. A taxpayer can also choose to wait and be billed for any applicable penalty and/or interest they may owe.
- Electronic funds withdrawals cannot be initiated after the return or form is filed.
EFW Payment Record Item and Instructions
| Item |
Instructions |
| Primary SSN |
This is the social security number of the first person listed on the return. Note: For Business Return/Forms an Employer Identification Number would be entered instead of an SSN. |
| Secondary SSN |
If applicable, this is the social security number of the second person listed on the return. |
| Routing Transit Number |
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 |
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. Be sure not to include the check number. |
| Type of Account |
The type of account can either be savings or checking. Many credit unions will not allow an electronic funds withdrawal from a savings account. Please check with your financial institution for further details. |
| Amount of Tax Payment |
Enter the exact amount you would like withdrawn from your bank account. Most payments should be in whole dollars (round cents to the nearest whole dollar). However, employment and excise tax payments should be made in dollars and cents. |
| Tax Type Code |
This is the same as the Form Number (1040, 1040ES, etc.). |
| Requested Payment Date |
Enter the date you would like funds to be withdrawn from your bank account in the format: YYYYMMDD (e.g. 20090415). |
| Taxpayer's Daytime Telephone Number |
Enter a telephone number where you can be reached Monday through Friday between the hours of 7:00 a.m.and 5:30 p.m. This number will only be used to contact you if there is a problem with your payment information. |
Sample Check:
Facts You Need to Know:
- This transaction authorizes the U.S. Department of the Treasury (through a Treasury Financial Agent) to transfer the specified payment amount from the taxpayer’s bank account to the Treasury’s account.
- The “United States Treasury Tax Payment” is included on the monthly bank statement as proof of payment.
- Funds are withdrawn on the payment date selected. However, if a weekend or bank holiday is designated, the payment will not be withdrawn until the next business day.
- The payment amount will be withdrawn in a single transaction. No recurring or partial withdrawals will be made.
Cancellations, Errors and Questions:
- Once the IRS e-file return is accepted, information pertaining to the payment, such as the account information, payment date or amount, cannot be changed. If changes are needed, the only option is to cancel the payment transaction and choose another payment method.
- Taxpayers should call the Treasury Financial Agent, Customer Service, at 1-888-353-4537, toll-free, to cancel a payment or to report problems such as bank closures, lost or stolen bank account numbers, closed bank accounts or unauthorized transactions. Customer Service is available 24 hours a day, 7 days a week.
- Scheduled payments can be cancelled up to 8:00 p.m. Eastern Time, two (2) business days before the scheduled payment date. The cancellation must be authorized by the taxpayer.
- Taxpayers may also call 1-888-353-4537 to inquire about payments but should wait at least 7 - 10 days after the e-file return is accepted before calling.
- Taxpayers will be notified if a payment is returned by the financial institution due to insufficient funds, incorrect account information, closed accounts, etc. If this occurs, the IRS will send a notification letter to the address on record explaining why the payment could not be processed. The letter will provide alternative options for making the payment. For questions regarding the letter, please call 1-888-353-4537.
- In the event the financial institution is unable to process the transaction, the taxpayer will be responsible for the tax payment and for any penalties and interest incurred.
- 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 is responsible for returning any improperly transferred funds.
Additional information is available in the articles below:
Electronic Payment Options for Individuals
Electronic Funds Withdrawal and Credit or Debit Card Payment Options for Businesses
Pay Taxes by Credit or Debit Card
Electronic Federal Tax Payment System (EFTPS)
Download IRS Forms and Instructions
Electronic Payment Options Home Page
|
