SECTION 10. ACH CREDIT ENTRY

.01 If a Filer chooses the ACH credit entry remittance method to make an FTD or FTP, the Filer may use any financial institution capable of originating an ACH credit entry.

.02 For each TIN used in making ACH credit entries through a financial institu

tion, the Filer may request that the financial institution originate a prenotification ACH credit.

.03 To initiate a timely ACH credit entry, a Filer must take into account the financial institution’s deadline for originating an ACH credit entry.

.04 When a timely ACH credit entry cannot be made, a Filer may instruct the financial institution to complete the transaction at the next opportunity to submit an ACH credit entry. The Filer may also use an ETA transaction. A Bulk Filer may initiate an ACH debit entry. However, a Batch Filer may initiate an ACH debit entry only if the taxpayer is enrolled for the ACH debit remittance method. If a taxpayer is not required to use EFTPS for FTDs, the Filer may use a paper FTD coupon or, if authorized by the taxpayer, the magnetic tape FTD program. To avoid penalties, the FTD or FTP must be received by an appropriate means on or before the FTD or FTP due date.

.05 The Financial Agent will receive and process the ACH credit entry payment information. The Financial Agent will compare the transaction’s payment information with the taxpayer’s enrollment record. If they match, the Financial Agent will send the payment information to the Service for posting to the taxpayer’s tax account.

.06 If the Financial Agent cannot identify the taxpayer, the ACH credit entry will be returned to the originating financial institution.

.07 Failure to provide correct, complete, and properly formatted payment information may cause an ACH credit entry to be returned. In the event of a return, a Filer may instruct the financial institution to submit a corrected ACH credit entry at the next opportunity to submit an ACH credit entry. The Filer may also use an ETA transaction. A Bulk Filer may initiate an ACH debit entry. However, a Batch Filer may initiate an ACH debit entry only if the taxpayer is enrolled for the ACH debit remittance method. If a taxpayer is not required to use EFTPS for FTDs, the Filer may use a paper FTD coupon or, if authorized by the taxpayer, the magnetic tape FTD program. To avoid penalties, the FTD or FTP must be received by an appropriate means on or before the FTD or FTP due date.

.08 An ACH Credit entry that is not returned or reversed will be deemed made

1998–17 I.R.B. 15 April 27, 1998

at the time that the funds are paid into the appropriate Treasury Department account.

.09 The ACH Rules will govern ACH credit entry returns and reversals.