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Avalara Help Center

Fund Your Tax Liabilities and Complete Power of Attorney

This article applies to:Avalara Returns

As a Returns customer, your tax liabilities are funded through an electronic withdrawal (ACH Debit) from your bank account. Avalara initiates this withdrawal according to your Funding Power of Attorney (POA) authorization. The sections below cover the steps for setting up your Funding POA authorization, funding timelines for tax liabilities, and other policies.

Note:

You must submit your Funding POA authorization by the 25th of the month of the first filing period for which Avalara will be submitting your returns (ex. January 25th for your January return, filed in February).

What is a Funding POA?

The Avalara Funding Power of Attorney (POA) form must be submitted by an authorized signer who has the authority to provide Avalara banking information and to grant Avalara the ability to debit the appropriate bank account the tax liability owed to jurisdictions based on the schedule outlined in the filing calendars you submit. The Funding POA also grants Avalara permission to deal with jurisdictions on your company's behalf regarding filling, backfiling, notices, and payment issues. The Funding POA must be submitted a minimum 30 days prior to going live with our Returns service or requesting a bank account change.

Who should submit a Funding POA request?

You should submit a Funding POA request if you are:

● A new Returns customer who plans to begin funding within the next 30-60 days
● An existing Returns customer who requires a banking change

Authorize a Funding POA

Submit a Funding POA authorization request

To initiate your Funding POA request through the Admin Console, follow these steps:

  1. In the Admin Console Dashboard, click the Organization tab.
    AdminConsole-Organizationtab.png
  2. Find the Company Name for the company you want to set up a Funding POA for and click the Funding POA icon at the right end of the row.
    Organization-CompanyName-ReturnsFundingPOA.png
  3. On the Funding POA Instructions page, type your authorized signer's email two times and click Submit. Click the + symbol in the View your Request History field to view the history and status of past requests.
    Organization-CompanyName-ReturnsFundingPOA-EmailEntryConfirm.png
  4. In the Confirm Funding POA Request dialog box, verify that the Company name, Recipient email, and Funding type are all correct and click Confirm. This sends the Funding POA request to the authorized signer you've selected. Click Cancel if you would like to start over.
    Organization-CompanyName-ReturnsFundingPOA-EmailConfirmdialog.png

Complete your Funding POA authorization request

Authorized Signers receive an email from Adobe Document Cloud eSign services (echosign@echosign.com) requesting that they complete a Funding POA authorization. Open the email and follow the instructions to complete the request.

  1. Open the email and click Click Here to view the Funding POA document.
    Temp_POA-Email1-Request.png
  2. Fill in the required fields.
    POA-PDF-Top.png
    POA-PDF-Bottom.png
  3. Digitally sign the Funding POA document and click Apply to apply the signature to the document.
    POA-PDF-DigitalSignaturebox.png
  4. Click Click to sign to submit the authorization.

    POA-Clicktosignbutton.png
  5. You'll receive a second email containing a signed copy of your Funding POA. Save this document for your records.
  6. In the Admin Console, the POA Funding icon will change to a green checkmark to indicate that the form has been completed.

Actions after your Funding POA is approved

Once Avalara approves your Funding POA, do the following to ensure Avalara is able to withdraw funds from the appropriate bank account to cover your tax liabilities.

  • Bank OriginationID: Please notify your financial institution that Avalara is authorized to debit your bank account for your tax liability funding by giving them our Bank OriginationID: #1911995935. Failure to provide this authority could result in your financial institution rejecting your funding, which will prevent us from paying your sales tax liability to jurisdictions.
  • Monitor ACH Debit Daily Limit: Please verify and monitor your daily ACH limit, as set by your financial institution, to ensure that your tax liability amount doesn’t exceed your daily ACH limit. You're responsible for tracking your limit against your sales tax liability each time Avalara is about to withdraw funds.
  • ACH Debit Rejects: You are responsible for immediately resolving any ACH Debit funding-pull rejections to ensure funds are received by Avalara by the 14th of the month. If your financial institution rejects the transaction, we require that you immediately contact Avalara Support so the issue can be escalated to the Avalara Treasury Department.
  • ACH Test transaction: This one Avalara will take care of. The Avalara Treasury group processes a zero-value ACH debit transaction against your bank account to verify the accuracy of the account information. Watch for the test transaction to occur on or around the 5th day of the month.

Update your bank account

If your banking information changes, complete a new Funding POA form. Follow the steps outlined above to update your bank account information.

  • Bank change deadline: All Funding POA changes must be completed by the 4th day of each month to ensure funds can be pulled on schedule.

Funding Details

Note:

The following information covers the monetary funding of your sales tax liabilities. To learn how to tell Avalara where you need us to file your taxes, which forms we need to submit, and your filing frequency, read about using the Returns Filing Calendar.

Timelines and funding exceptions

Avalara must receive the full tax liability amount for each filing period no later than the 14th of the month, according to the Returns terms and conditions. ACH Debit pulls are initiated between the 11th and 14th of the month, and they use the total collection amount shown in the “Due to Avalara” column on the Liability Worksheet. The Liability Worksheet can be accessed from the Admin Console.

TaxReturns-LiabilityWorksheet.png

ACH Debits can take up to 4 banking days to clear Avalara’s bank account. Please note that if an ACH Debit is returned, Avalara requires that your company send a one-time wire transfer for the full liability amount. Due to the 4 day return window mandated by the bank, Avalara will not process a second debit because the funds typically will not clear in time for jurisdiction deadlines.

  • Customer tax liability funding policy: Avalara does not remit tax liability payments to jurisdictions until the customer’s funding has cleared our bank. In the event of any funding issues, contact the Avalara Treasury Department immediately. Please contact Avalara Support if you require urgent assistance.
  • Late funding: Return tax liabilities funded after the 14th are filed on a "best effort" basis. Avalara is not responsible for any assessments due (including, but not limited to, all penalties and interest) as a result of remitting returns without payment.

Tax liability due increases – additional funding required

If Avalara determines that your tax liability due has increased from the amount you approved in your liability worksheet, we withdraw additional funds from your account to make up the difference, ensuring you are in compliance. View details of your tax liability worksheet in your Admin Console.

TaxReturns-LiabilityWorksheet.png

If you have any questions about this notification, please contact Avalara Support or your Customer Account Manager.

Refunds

Avalara processes refunds on or around the 26th of the month. These refunds are typically due to return adjustments that occur after the initial funding (between the 11th and 14th of the month). If you need additional information regarding the return associated with the refund, view your tax liability worksheet in the Admin Console or contact Avalara Support.