As an Returns customer, your tax liabilities are funded through an electronic withdrawal (ACH debit) from your bank account. Avalara initiates this withdrawal according to your Avalara funding power of attorney (POA) authorization.
Submit a funding POA if you're:
- A new Returns customer who plans to begin funding within the next 30-60 days
- An existing Returns customer who requires a banking change
The funding POA must be submitted by an authorized signer who has the authority to do both of the following:
- Provide Avalara with banking information
- Grant Avalara the ability to debit the appropriate bank account to pay your tax liability. We'll make those payments only to the jurisdictions and at the times indicated in the returns schedules you submit.
In addition to paying tax liabilities, the funding POA grants Avalara permission to deal with jurisdictions on your company's behalf regarding returns filing, late or amended returns filing, notices, and payment issues.
You must submit your funding POA authorization:
- For your first filing period with Returns - A minimum of 30 days prior to going live with the Returns service
- For banking changes - Must be completed by the 5th day of each month to ensure funds can be pulled on schedule
If you won’t be able to submit your funding POA by the applicable deadline, contact your Customer Account Manager (CAM) .
Authorize a Funding POA
- Go to Returns > Funding Power of Attorney.
- If you are an authorized signer, fill out and submit the POA now. If you aren't an authorized signer, tell Avalara who to contact and we'll send them a request to fill out and submit the POA.
On the Schedule and Approve Returns page under Returns > Manage and Approve Returns, you'll see a notice if a funding POA hasn't been submitted or if it has been submitted and is waiting for approval. If you don't see a notice on the Schedule and Approve Returns page, then your POA has been submitted and approved.
Actions after your funding POA is approved
Once Avalara approves your funding POA, ensure Avalara is able to withdraw funds from the appropriate bank account to cover your tax liabilities.
- Bank OriginationID: 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 prevents us from paying your sales tax liability.
- 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 you to immediately contact Avalara Support so the issue can be escalated to the Avalara Treasury Department.
- ACH Test Transaction: This one Avalara takes 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.
- 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.
Understand 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, see scheduling returns for Avalara to file.
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 Schedule and Approve Returns page.
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 on your Schedule and Approve Returns page, we withdraw additional funds from your account to make up the difference, ensuring you're in compliance.
If you have any questions about this, contact Avalara Support or your Customer Account Manager (CAM).
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 Schedule and Approve Returns page in AvaTax Update or contact Avalara Support.