SECTION 9. ACH DEBIT ENTRY

.01 For an FTD or FTP to be timely, a Filer must complete the initiation of an ACH debit entry with a Financial Agent at least one business day prior to the FTD or FTP due date.

.02 A Filer may “warehouse” an ACH debit entry for a business taxpayer by arranging for the entry up to 30 days in advance of the due date. A Filer may warehouse an ACH debit entry for an individual taxpayer by arranging for the entry up to 105 days in advance of the due date.

.03 After a Batch Filer or a Bulk Filer initiates a single ACH debit entry, the Financial Agent will validate the taxpayer’s payment information and issue an acknowledgment number to the Filer. The acknowledgment number verifies when the necessary payment information was received by a Financial Agent but does not constitute proof of payment. See section 12 of this revenue procedure regarding proof of payment.

.04 After a Bulk Filer initiates a bulk ACH debit entry, the Financial Agent will validate the taxpayers’ payment information and issue acknowledgment numbers to the Filer for accepted payments. The Bulk Filer will receive an acknowledg

ment number for the bulk ACH debit entry and separate acknowledgement numbers for each accepted FTD or FTP included in the bulk ACH debit entry. The acknowledgment numbers verify when the necessary payment information was received by a Financial Agent but do not constitute proof of payment. See section 12 of this revenue procedure regarding proof of payment.

.05 In a bulk ETA debit entry, any rejected payment will be returned to the Bulk Filer without an acknowledgement number and subtracted from the bulk ACH debit entry, as specified in the Implementation Guide for EFTPS Bulk Filers. The Bulk Filer assumes responsibility for reinitiating any rejected payments.

.06 Pursuant to the Filer’s instructions, the Financial Agent, on the date designated by the Filer, will originate the transfer of funds from the taxpayer’s or Filer’s account to the appropriate Treasury Department account. The Financial Agent also will transmit the related payment information, supplied by the Filer, to the Service for posting to the tax account(s) of the taxpayer(s).

.07 The Service will deem an FTD or FTP made by an ACH debit entry to have been made at the time of the debit (that is, when the amount is withdrawn from the taxpayer’s or Filer’s account and not returned or reversed).

.08 When a timely ACH debit entry cannot be made, a Filer may instruct the Financial Agent to complete the transaction at the next opportunity to submit an ACH debit entry. The Filer may also use an ACH credit entry or an ETA transaction. 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.

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