(a) A taxpayer in
the EFT program shall also file periodic and annual returns in the same manner
as if the taxpayer were not in the EFT program. Instead of attaching a check or
money order to the return, however, the taxpayer shall follow procedures
established by the department to coordinate the EFT payment with the proper
return. If a taxpayer participating in the EFT program desires to make a
payment under protest within the meaning of section
40-35,
HRS, the protest shall be filed with the tax return to which it applies,
irrespective of when the EFT payment was authorized or made.
(b) The rules in this subsection apply to
taxpayers using the ACH debit method.
(1) To
assure the timely receipt of payment of tax, a taxpayer shall initiate the
payment transaction with the Data Collection Center in time for the payment to
be deposited to the state treasury on or before the appropriate due date. Thus,
in general, the taxpayer shall report payment information to the Data
Collection Center, by the approved means of communication, no later than the
end of the call-in period on the business day before the due date of the
payment.
(2) After establishing
contact with the Data Collection Center, the taxpayer may communicate payment
information for more than one tax type or tax period. However, the taxpayer
must initiate payment information for each tax type and for each tax period for
which a payment is due.
(3) A trace
number will be issued at the conclusion of the communication of the payment
information for each tax type and tax period. This number provides a means of
verifying the accuracy of the recorded tax payment and serves as a receipt for
the transaction.
(4) The department
shall bear the costs of processing ACH debit method payments through the Data
Collection Center.
Example: A taxpayer uses the ACH debit method to
remit the March, 1996 payment of general excise and use tax. The taxpayer first
determines that the total amount of tax due is $12,345. Before the end of the
call-in period on April 29, 1996, the taxpayer shall contact the Data
Collection Center. After establishing contact, the taxpayer shall communicate
to the Data Collection Center its payor identification number, tax type
(general excise and use tax), document type (monthly return), payment amount
($12,345), and tax period (March, 1996). At the end of the communication, the
taxpayer will receive a trace number which will verify the accuracy of the
recorded tax payment and serve as a receipt for the transaction. Payment
information involving the ACH debit transfer will be electronically transmitted
to the department on April 29, 1996, shortly after the expiration of the
call-in period. The actual tax payment of $12,345, however, will not be
transferred to the state treasury until the following day, April 30, 1996. The
taxpayer shall also file its monthly return in the normal manner, except that
the taxpayer shall follow procedures established by the department to
coordinate the EFT payment with the proper return, instead of attaching a check
or money order to the return.
(c) The rules in this subsection apply to
taxpayers using the ACH credit method or any other EFT method.
(1) Taxpayers who have been granted
permission to use the ACH credit method or any other EFT method shall contact
their own financial institutions and make arrangements to transfer the tax
payment to the state treasury.
(2)
The department shall not bear the costs for taxpayers to use the ACH credit
method or any EFT method other than the ACH debit method.
(3) To assure the timely receipt of payment
of tax, a taxpayer shall initiate the payment transaction with its financial
institution in time for the payment to be deposited to the state treasury on or
before the appropriate due date.
(4) Any ACH credit transfer or any other EFT
must be accompanied by an addenda record, in the format specified by the
department, which includes all of the information required by the
department.
(5) If a taxpayer
repeatedly fails to provide the department with the required addenda record,
the department may require the taxpayer to use the ACH debit method.
Example: A taxpayer uses the ACH credit method to
remit the March, 1996 payment of general excise and use tax. The taxpayer first
determines that the total amount of tax due is $12,345. At a time arranged
between the taxpayer and the taxpayer's financial institution, the taxpayer
provides the financial institution with the information necessary to initiate a
transfer of the March, 1996 tax payment and an accompanying addenda record that
will be posted to the state treasury on April 30, 1996. To be timely, the ACH
credit transfer of March, 1996 general excise and use tax must be deposited to
the state treasury as collected funds on or before April 30, 1996. The taxpayer
shall also file its monthly return in the normal manner, except that the
taxpayer shall follow procedures established by the department to coordinate
the EFT payment with the proper return, instead of attaching a check or money
order to the return.
