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ACTION NEEDED: Avalara is updating the funding liability bank account on August 1, 2021

What is happening

Effective August 1, 2021, Avalara will change the bank account owners from Avalara, Inc. to Avalara Client Trust (a Delaware statutory trust), a subsidiary of Avalara, Inc. 

When accounts are migrated to Avalara Client Trust, the account type, number, and financial institution holding the account will all stay the same.  The only change is that Avalara Client Trust will become the account owner.

Based on how you transmit funds for your tax obligations, see below for the action you need to take.

What you need to do

Based on how you transmit funds for your tax obligations, see below for the action you need to take.

Tax obligations funded via wire transfer

When the account holder is changed to Avalara Client Trust, the account type, number, and financial institution holding the account will all stay the same.  

Because your business currently funds tax obligations via wire, you will need to notify your institution of the new account holder on August 1, 2021. This will ensure funds wired to Avalara are not rejected and Avalara can continue to fulfill tax remittances on your behalf.

NOTE: If Avalara is unable to file or pay your tax obligation in a timely manner due to rejection of wire funds, you may receive a tax notice with penalties and interest assessed.

Tax obligations funded via ACH

When the account holder is changed to Avalara Client Trust, the account type, number, and financial institution holding the account will all stay the same.  

Because your business currently funds your tax obligations via ACH, contact your financial institution and

  1. Determine if any ACH Fraud Filter requires the bank account holder name as a verification point. 
  2. If so, on August 1, 2021 change the name of the account holder to Avalara Client Trust within your ACH fraud filter tool at your bank.

NOTE: If Avalara is unable to file or pay your tax obligation in a timely manner due to ACH payment issues, you may receive a tax notice with penalties and interest assessed.

FAQs for Returns customers

Q: Will Avalara’s bank origination id change?
A: No. Since the change will only impact the beneficiary name, bank origination id will remain 1911995935.

Q: My company files returns in the U.S and Canada. Will this impact how I fund my Canadian returns?
A: Yes. The beneficiary name change will impact both the US Dollar and Canadian Dollar bank accounts.

 Q: Will this impact how I pay my service fees?
A: No. This change will impact the bank accounts used to transmit funds for your tax obligations. No changes are being made to the bank account where you send your service fees.

Q: How can I obtain a new W-9?
A: To obtain an updated W-9, download a copy or contact customer support for assistance. 

Q: My company has a policy to issue a test wire (penny test) prior to changing banking instructions. Are you able to help with that?
A: We’re happy to help! Please contact customer support to coordinate a penny test using the Avalara Client Trust beneficiary name.

Q: I have multiple entities that file returns with Avalara. Is this change applicable to all of my filing entities?
A: Yes. Please ensure the change is made for all US and Canadian filing ids.