AutoFile Banking FAQ

AutoFile Banking Frequently Asked Questions 

AutoFile Banking Frequently Asked Questions

• Does TaxJar's AutoFile debit my bank account for the taxes I owe the state?
• What should I enter if the state asks me to set up my banking/payment details during registration?
• Can I enroll in AutoFile if my bank is not located in the United States?
• Do I need to have a corporate bank account to enroll in AutoFile?
• If I enroll in AutoFile in multiple states, can I use different bank accounts for the debits for some states?
• Should I use a Checking or Savings account to enroll in AutoFile?
• Can I use Payoneer, WorldFirst or Transferwise accounts for AutoFile?What do I need to know about ACH transfers and electronic debit blocks?
• Which ACH transfer numbers will I need to add to my bank's approved list?
• Why do you need my bank account information for AutoFile?
• When will my bank account be debited for the taxes owed with AutoFile?
• What happens to my filing if my payment is declined by the state?
• I need to update my AutoFile bank account.

Does TaxJar's AutoFile debit my bank account for the taxes I owe the state?

No; the state will debit your bank account for the tax payment due.

I'm registering with the state but plan to use AutoFile for my returns. What should I enter if the state asks me to set up my banking/payment details during registration?

• In order to enroll in AutoFile, you must first have an active sales tax registration. If you would like to be consistent in your set up with the state and the details you plan to use for AutoFile during the registration process, we recommend that you set-up this portion of your account with the state using the bank account and routing details that you plan to use when you enroll in AutoFile. 
• If the state asks you to choose an ACH Debit or ACH Credit as a payment option, please select ACH Debit. 
• When you enroll in AutoFile, you'll need to provide the bank account and routing number in your AutoFile enrollment form. Those details will be submitted to the state along with your return and the state will do an ACH debit of your account. 

Can I enroll in AutoFile if my bank is not located in the United States?

No. In order to use this service, you will need to have a US-based bank account (the bank must have an actual location in the US) that allows for ACH debits.

Do I need to have a corporate bank account to enroll in AutoFile?

No. As long as the bank is US based and allows for ACH debits, it does not need to be a business or corporate bank account.

If I enroll in AutoFile in multiple states, can I use different bank accounts for the debits for some states?

No. We currently support a single bank account for all AutoFile enrollments in a TaxJar account. Once you've been successfully enrolled in AutoFile for one state, the same banking details used in the initial enrollment will automatically apply to all additional AutoFile enrollments.

Should I use a Checking or Savings account to enroll in AutoFile?

Some states (such as Virginia and New Jersey) require a checking account for tax payments. If you plan to enroll in AutoFile for a combination of states that includes Virginia or New Jersey, you should enroll with a checking account

Can I use Payoneer, WorldFirst or Transferwise accounts for AutoFile?

You must have a US based bank account to use AutoFile and at this time, Payoneer, WorldFirst and Transferwise accounts do not fit the requirements of the required US based bank account for this service.

• If you are using a bank account from one of these service, you will need to file manually rather than using AutoFile at this time.

What do I need to know about ACH transfers and electronic debit blocks?

What is a debit blocker?

Many banks and financial institutions have implemented anti-fraud safeguards that block unknown electronic debit attempts to your account. These debit blocks are in place to protect your bank account from unauthorized electronic debits.

To ensure that your  authorized electronic debits will be allowed, you will need to add the originator identification (ID) number for each debiting bank to your approved list.

If you have a debit blocker enabled on your bank account, and the state Department of Revenue's ACH originator IDs are not on your approved list when the payment is submitted, the payment may be rejected and you would need to resubmit the entire payment, (as well as potential penalty and interest). 

What is an originator identification number (originator ID)? 

The originator identification number, or originator ID, is the 10-digit ID assigned to a company by their bank. In this case, the company is the state's Department of Revenue.

An originator identification number for ACH payments also allows your bank to trace payments. If you were to receive a credit into your account from an originator you were unaware of, the bank could complete an ACH trace to see who the originator of the payment was.

How do I avoid a debit block? 

To ensure your debit payments are successful, you should: 

1. Speak with your bank before setting up a debit payment. 
2. Provide the originator ID and name to your bank for the type of tax payment you need to make.

Which ACH transfer numbers will I need to add to my bank's approved list?

Listed below, we have provided each of the states with their publicly available ACH originator IDs. 

• States without publicly available originator IDs have been noted with an asterisk(*). You will need to call the DOR to obtain these originator IDs.
• Note: Before adding an ID to your approved list, we strongly recommend that you visit the state's website to verify that the originator ID is the most current ID available.

Why do you need my bank account information for AutoFile?

All TaxJar subscription fees, overage fees and AutoFile filing fees are billed to your credit card on file, listed in your Account. 

The sales taxes owed to the states when you are enrolled in AutoFile are withdrawn directly from your bank account by the state's DOR using the Account number and Routing number you enter in your AutoFile enrollment form.

When will my bank account be debited for the taxes owed with AutoFile?

As we mention here, though we can't predict in advance the exact date your return will be filed, if you use AutoFile, we guarantee that your return will submitted and confirmed by the state's due date.

• When you use AutoFile, your bank account number and routing number are sent directly to the state and the state (not TaxJar) will debit your bank account for the tax payment owed.
• The state will typically debit your return when the return is marked as In Progress, Submitted or Complete on your account's AutoFile Dashboard, but because the debit is controlled by the state's DOR, we cannot predict the date they will withdraw the funds from your account.
• If funds are not available in the account when the state attempts their debit or if the payment was blocked by your bank for any reason, you will receive a notice from the state for nonpayment/failure to pay. In order to ensure that your account remains in good standing, you will need to contact the state directly to make arrangements for a new debit attempt. (We have contact details for each state's sales tax department here.)

What happens to my filing if my payment is declined by the state?

If you're currently enrolled in AutoFile, and if the state is not able to debit your account, the DOR will notify you directly.

• The state may send a non-payment notice by mail, or they may call, email, or post an electronic non-payment notice in your state e-file account.
• Please note: TaxJar does not handle the payment directly as this is a direct debit from the state. 
• TaxJar can only attempt to submit your payment one time. 
  • If payment is declined, AutoFile cannot re-submit the payment on your behalf.
  • Rest assured that your sales tax return that was filed via AutoFile has been submitted, but your payment has not. 
  • You will need to correct the non-payment issue directly with the state, yourself. 

How do I resolve my non-payment issue with the state? 

In order to resolve a rejected payment, you will need to take the following actions:

1. Contact your bank to release the payment to the state (If your account has a debit blocker, you will need to contact your financial institution to resolve the issue.)
2. Log in to your state account and make the payment or contact the state directly to complete your payment.

How can I make sure my payments are successful in the future?

To ensure that future filings are not affected, first review and confirm the accuracy of your AutoFile bank account and routing number details on your AutoFile Dashboard. 

Here are some additional issues that could cause the state to reject your sales tax payment:

• Your banking information was incorrectly provided to TaxJar 
• There were insufficient funds in the bank account at the time of draft
• The bank account has been closed
• There is one or more debit blocks on the account

For specific questions about why your payment did not go through, you will need to speak directly with the state. You can find the contact numbers for each state here. 

I need to update my AutoFile bank account

If you are enrolled in AutoFile, the taxes owed to the states are debited from your bank account by the state's DOR, so it's important to make sure that you provide the correct bank account and routing number in your AutoFile enrollment form.

• You will not be able to choose the date that your return is filed by AutoFile, nor the date that your account is debited.

When your return is filed by AutoFile, your bank account and routing number will be sent directly to the state.

• The DOR will then debit your account for the payment due.
• If the state is not able to debit your account, the DOR will notify you directly.
• The state may send a non-payment notice by mail, or they may call, email, or post an electronic non-payment notice in your state efile account.
• To make sure the state receives your payment, you will need to contact the state directly to make arrangements for a new debit attempt.
  • Prevent further debit blocks by safelisting each state's unique originator ID with your bank. 

To prevent payment issues moving forward, you should update the bank account details in your AutoFile enrollment form:

• Please note that a single bank account is supported for all AutoFile enrollments in your account. Updating your bank account for one enrollment will apply to all states where you are enrolled in AutoFile.
• You can review your current account and routing number by clicking the 'change' link under the state name in your Dashboard. From there, click the 'Change AutoFile Settings' link on the next page.
• If you need to make a change to your bank account or routing number for AutoFile, you can do this by editing the bank details section of your AutoFile Dashboard page. Currently member users do not have access to update the banking information for AutoFile.