Electronic Funds Withdrawal, or Direct Debit is a way to pay your tax liability directly from your bank account using the Automated Clearing House (ACH) banking network.

With this method you can instruct the Government to debit your account for your tax payment at the same time you file your return.  Different than other providers, there is no fee imposed by the Government or by us for direct debit payments.

When filing a Form 1040 Personal Income Tax Return, Form 4868 Application for Automatic Extension, or a State tax filing with a balance due, as you finalize the tax return filing, the System will ask if you want to pay using a paper check, Credit Card, or Direct Debit.  If you select Direct Debit, you will be asked to enter information about your financial institution.  The information can be obtained from official financial institution records, account cards, checks or share drafts that contain the taxpayer’s name and address. It is recommended that you check with your financial institution to confirm this information.

You will need the following information to complete the Electronic Funds Withdrawal transaction:

• Amount of Tax Payment
• Your Bank’s Routing Number (Do not use a deposit slip to obtain the number, but rather, a rely on a check, or when in doubt, contact your banking institution.)
• Your Bank Account Number (An indication of whether it is a savings or checking account.  Note that many credit unions don’t allow an electronic funds withdrawal from a savings account.  Please check with your financial institution for further details.)

Additional Information:

• Be sure that your financial institution allows EFW requests from the designated account. Some credit unions do not permit direct debits from share accounts.
• The Government generally confirms receipt of the payment.  It is recommended that after your filing is accepted you check your eFile status.  On the eFile status page, confirmation of payment will appear on the screen and you can verify the payment details.
• Submitting an Electronic Funds Withdrawal authorization authorizes the US Department of the Treasury, State, or other Government Agency to transfer the payment amount from the specified bank to the Government’s account.
• A transaction will be shown on your bank statement as proof of payment.  For IRS payments it may appear as “IRS USA Tax Payment,” or “IRS USA Tax Pymt.”
• If the payment date requested is a weekend or bank holiday, they payment will be withdrawn on the next business day.  In that case the bank may put a hold on those funds and treat it as a pending transaction.
• The payment amount will be debited in a single transaction.  No recurring or partial withdrawals will be made.