If you're a Returns customer, your tax liabilities are funded through an electronic withdrawal (ACH debit) from your bank account. Avalara needs your funding power of attorney (POA) authorization to initiate this withdrawal.
Submit a funding POA if you're:
- A new Returns customer who wants to begin funding in the next 30–60 days.
- An existing Returns customer who's changed banks.
The funding POA must be submitted by an authorized signer who gives Avalara banking information as well as the ability to debit a bank account to pay your tax liability. Your filing calendars tell us when to pay, and to which jurisdictions.
If you're filing with Returns for the first time, submit your funding POA authorization at least 30 days before you go live on Returns. If you're changing banks, submit your funding POA before the 5th of the month; this ensures funds can be withdrawn on schedule.
If you can't submit a funding POA on time, contact your Customer Account Manager (CAM) .
Authorize a Funding POA
Submit a funding POA authorization request
To initiate your funding POA request through AvaTax, follow these steps:
- Click the Organization tab.
- 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.
- 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.
- In the Confirm Funding POA Request dialog box, verify that the information is correct and click Confirm. This sends the funding POA request to the authorized signer you've specified. Click Cancel if you would like to start over.
Complete your funding POA authorization request
Authorized Signers receive an email from Adobe Document Cloud eSign services (firstname.lastname@example.org) requesting that they complete a funding POA authorization. Open the email and follow the instructions to complete the request.
- Open the email and click Click Here to view the funding POA document.
- Fill in the required fields.
- Digitally sign the funding POA document and click Apply to apply the signature to the document.
- Click Click to sign to submit the authorization.
- You'll receive a second email containing a signed copy of your funding POA. Save this document for your records.
- In AvaTax, the POA Funding icon changes 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: 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're 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 5th day of each month to ensure funds can be pulled on schedule.
The sections below explain the timeline and funding of your sales tax liabilities.
To learn how to tell Avalara where you need us to file your taxes, which forms you need us to submit, and your filing frequency, read about using the Returns filing calendar.
Timelines and funding exceptions
According to the Returns terms and conditions, Avalara must receive the full tax liability amount for each filing period no later than the 14th of the month. We initiate ACH debit pulls between the 11th and 14th of the month, and the amount pulled is determined by the total collection amount shown in the Amount Due column on your liability worksheet. Find your liability worksheet on the Tax Returns tab.
ACH debit returned
ACH debits can take up to 4 banking days to clear Avalara’s bank account. 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, we won't process a second debit because the funds typically won't clear in time for jurisdiction deadlines.
Customer tax liability funding policy
Avalara doesn't remit tax liability payments to jurisdictions until your funding has cleared our bank. In the event of any funding issues, contact the Avalara Treasury Department immediately by contacting Avalara Support.
Avalara files return tax liabilities funded after the 14th on a "best effort" basis. Avalara isn't responsible for any assessments due (including, but not limited to, all penalties and interest) as a result of remitting returns without payment.
Increased tax liability due
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're in compliance. Find your liability worksheet on the Tax Returns tab.
Avalara processes refunds on or around the 26th of the month. Refunds are typically caused by return adjustments that occur after the initial funding (between the 11th and 14th of the month). If you need additional information about the return associated with the refund, view your liability worksheet on the Tax Returns tab or contact Avalara Support.