Sec. 18.11.01.04. Use of ACH Payments

A. General. A taxpayer using the ACH payment method shall make the appropriate arrangements to initiate the payment so that the transfer is executed on the date payment is due.

B. ACH Debit.

(1) A taxpayer shall furnish to the Department the banking information necessary to generate ACH debits against the taxpayer's designated account.

(2) When a taxpayer's information used to generate ACH debit against the taxpayer's account changes, the taxpayer shall provide the new banking information to the Department 30 days before initiating an ACH transaction.

C. ACH Credit.

(1) A taxpayer using the ACH credit payment method shall initiate each payment of tax by contacting its own financial institution and requesting the institution to transfer both the appropriate identifying information and payment to the State's depository bank via an ACH credit.

(2) A taxpayer shall remit an ACH credit transaction with an addendum record formatted in accordance with the appropriate TXP convention.