Utah – Updated Electronic Funds Transfer Publication

SALT Report 2816 – The Utah State Tax Commission updated its publication regarding electronic funds transfers and how to make tax payments using the ACH credit method. This method allows you to pay your taxes electronically, which is often safer, more efficient, and less expensive than paying with a paper check.

All taxpayers must be pre-authorized prior to making their first ACH credit payment to the Commission.  To initiate the process, taxpayers should submit Form TC-86, Registration to Make Utah Tax Payments Through EFT ACH Credit.  Once approved, the Commission will send a written confirmation.  This process typically takes 10 days.

After you have been approved, you must authorize your bank to make an EFT transfer for each tax account and each reporting period. When authorizing an EFT transfer, the bank will require that you specify a settlement date that will allow the payment to be taken from your account and credited to the Commission’s account.

The ACH system requires at least one day to complete a transfer, therefore you must authorize the payment a minimum of one business day prior to the payment’s due date. However, some banks may require more than one day to process EFT payments.  Because of this, the Commission advises that you verify your bank’s policies to ensure there is adequate time to process a payment.

In some cases, the bank may require a pre-note, or test transmission, in the amount of $0 before they will transfer actual funds. This process can take up to 10 days to complete, so you should contact your bank to see if this requirement applies.

The updated publication also addresses addendum transfer formats, tax type codes, due dates, and rules that are specific to sales and use tax, corporate income tax, and motor fuel tax.

For Further Information

Utah State Tax Commission – Publication 43