What is Electronic Funds Withdrawal – Direct Debit or ACH Debit?
Electronic Funds Withdrawal is an ACH Debit process. ACH Debit stands for Automated Clearing House Debit. This method of payment is not new in our day to day affairs. Many people use this method to make their insurance premium payments, mortgage payments, car payments, etc. It may be known as ‘direct payment out of the checking account’, ‘direct debit’, ‘automatic payments out of the account’, etc., and eliminates the hassle of writing and mailing checks, and the embarrassment of forgetting to mail bills on the proper due dates. If you have a balance due (amount you owe) to the Government in relation with your Personal Income Tax Return, you are able to pay your taxes by Electronic Funds Withdrawal from your bank or financial institution account. Some of the states that allow electronic filing will also accept Electronic Funds Withdrawal-Direct Debit method of payment. For instance, California FTB obligation may be paid in this manner. US Treasury Terms and Conditions Income Tax Paymen
Related Questions
- If the taxpayer is e-filing after the due date and they choose to pay by Electronic Funds Withdrawal (ACH debit) will they need to select the day of acceptance?
- Does the processing center call the banks first to verify funds before creating an ACH transaction for Electronic Check Recovery?
- What is Electronic Funds Withdrawal - Direct Debit or ACH Debit?
