Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-13-1 - PAYMENT OF TAXES THROUGH ELECTRONIC FUNDS TRANSFER › Section 810-13-1-.10 - Procedures For ACH Debit Payment Method

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
Introduction
.
			 Certain taxpayers are required to pay their taxes with an electronic funds
			 transfer (EFT) pursuant to Section
			 41-1-20,
Code of Ala. 1975
. Taxpayers required to make tax
			 payments to the Department via EFT shall use the Automated Clearing House (ACH)
			 Debit payment method, unless otherwise approved by the Department to use the
			 ACH Credit payment method. The ACH Debit payment method is the preferred EFT
			 payment method by the Department. The Department bears the costs of processing
			 ACH Debit method payments. Taxpayers who are not required to pay by EFT may
			 voluntarily choose to pay by EFT.
(2)
Definitions
. For
			 purposes of this rule, the following terms will apply:
(a)
EFT or Electronic Funds
			 Transfer
means any transfer of funds, other than a transaction
			 originated by check, draft, or similar paper instrument, which is initiated
			 through an electronic terminal, telephonic instrument, or computer so as to
			 order, instruct, or authorize a financial institution to debit or credit an
			 account.
(b)
ACH or
			 Automated Clearing House
means a nationwide system run by the
			 Federal Reserve and designed to transfer funds electronically between financial
			 institutions using industry accepted standards. These standards ensure network
			 security and increased efficiency of the transactions.
(c)
ACH Debit payment
			 method
means the electronic transfer of funds cleared through the
			 ACH system that is generated by the taxpayer instructing the Department, using
			 either the Department's telephonic or Internet e-pay systems, to charge the
			 taxpayer's bank account and deposit the funds to the Department's bank
			 account.
(d)
ACH Credit
			 payment method
means the electronic transfer of funds cleared
			 through the ACH system that is generated by the taxpayer instructing the
			 taxpayer's bank to charge the taxpayer's bank account and deposit the funds to
			 the Department's bank account. See Rule
			 810-13-1-.11 entitled
Procedures for ACH Credit Payment
			 Method
.
(e)
Paperless Filing and Payment System
(system) means the Department's Internet and toll-free
				Telephone system developed for the purpose of allowing taxpayers to
				electronically file and pay the predefined taxes available in the system to the
				Department using the ACH debit payment method. For those state and local
				business taxes that can be filed through the system, the payment is made as
				part of the filing process. For all other taxes that cannot be filed through
				the system, a 'Payment Only' option is available to give taxpayers the ability
				to make an EFT debit method payment. The predefined taxes are provided in the
				Department's
EFT Program Guide Booklet of ACH Debit Payment Method
				Procedures & Guidelines.
(f)
Sign On ID and Access
			 Code
means the log in codes assigned by the Department to a
			 business taxpayer for the purpose of accessing the Paperless Filing and Payment
			 System. The Department provides this information in a letter that is mailed to
			 the taxpayer. This information is confidential and taxpayers are instructed to
			 not improperly disclose these codes. Taxpayers making payments for state
			 individual income taxes do not need a Sign On ID and Access Code to access the
			 Paperless Filing and Payment System to make a payment.