1065 / 1120 States: Electronic funds withdrawal

Show expandable text

New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

For electronically filed returns, extensions and estimates, certain state taxing agencies allow taxpayers to pay balances due via electronic funds withdrawal (EFW). Refer to the State Electronic Filing Guide to determine the states that allow EFW.

If a state allows electronic filing for extensions or estimates, they generally allow electronic funds withdrawal requests.

Data entry

To ensure the debit of an electronic funds withdrawal request is successful, you must enter the following. 

  1. In the federal Electronic Filing folder, click the ELF tab and enter X in the File the return electronically field. 
  2. In the federal General folder, enter the telephone number for the return as follows:
    • For an 1120, use the Client phone number field in the 1120 and 1120S Information section.
    • For a 1065, use the Telephone number field in the Partnership Information section. 

  3. In the federal General folder, click the Bank tab and enter the bank information. 

    UltraTax CS considers the bank information you enter in the federal input screens as the primary account and will use that information for all returns attached to the client. If you do not want to enter bank information for the federal return, or you want to enter different bank information for the state, use the Bank screen in the state input screens in the next step.

  4. In the General folder of the state input screens, click the Bank tab and ensure the bank information is correct. 

  5. For returns and extensions:

    If you would like the date of withdrawal to occur before the due date of the return, specify a date in the Requested payment date field of the ELF screen in the state Electronic Filing folder. Otherwise, leave the field blank. If you are filing a return after the original deadline, the date you enter cannot be after the date you transmit the return to the agency.

    For estimates:

    For each quarter that you authorize EFW, UltraTax CS enters the standard due date for the state. You can adjust the dates for electronic withdrawal in the Requested withdrawal date fields.

Notes:

  • Although the taxing agency will not withdraw the payment before the requested date, they may withdraw it after. Regardless of the date the state actually processes the payment, they will consider it timely if you request the withdrawal date and submit the e-file on or before the due date.
  • The state return will not default to electronically withdraw payments if an EFW request is present on the federal return.
  • Some states allow you to force the amount to be paid with EFW. If you force an amount to be debited, it cannot exceed the balance due as shown on the return. An amount that exceeds the balance due will be rendered invalid and will not be included in the electronic file.
  • State taxing agencies cannot process international ACH transactions (IAT). If you indicate the return is a Non-US Financial Institution on Screen Bank, UltraTax CS suppresses the direct deposit or electronic funds withdrawal.

Was this article helpful?

Thank you for the feedback!