Electronic Funds Transfer Terms and Conditions

One option for paying your taxes is with an electronic funds transfer (EFT). An electronic funds transfer is an e-file option you can use when filing your federal taxes with tax preparation software or with help from a tax professional. The term EFT refers to an electronic transaction that instructs a financial institution to credit or debit your asset account.

If you decide to use this option, the electronic funds transfer terms and conditions state that you can submit one or more payment requests for the direct transfer from your designated bank account.

Your legal rights with respect to a tax payment by electronic funds transfer are governed by Revenue Procedure 97-33 (primarily Section F) and by Automated Clearing House (ACH) rules. This is a plain English summary, which doesn’t provide any additional rights beyond the EFT regulations. A copy of Revenue Procedure 97-33, Section F is available on the IRS website.

It includes these topics:

• Your liability for payment
• What to do if there are errors or questions
• Deferring payments
• Disclosure of account information to third parties
• Charges
• What to do if payment isn’t completed by your bank
• Notifying the IRS if you move or if you change banks

ETF Regulations — Your Liability for Payments

As part of the ETF regulations, you’ll be liable for payments even if there are difficulties in making your payment. If for any reason the financial institution that you identified with your return can’t process your tax payment, you’ll be mailed a notice that will instruct you to mail a check. This check must be mailed by the tax deadline in order to be considered timely payment for your taxes.