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What should I do with California Electronic Funds Transfer credit instruction notices?

Overview

You want to know what you should do with California EFT credit instruction notices

 

Environment

Returns

 

 

Resolution

California issues various types of notifications throughout the year. No action is required. Avalara uses ACH Credit (a form of EFT) to pay California every month on behalf of all taxpayers, regardless of liability amount.  Avalara has been using ACH Credit to issue all payments to California, and we will continue to do so. Below are the types of letters and what they mean.

  • Change to Mandatory Electronic Funds Transfer Status for Sales and Use Tax
    • Your average monthly tax liability exceeds $10,000, so voluntary participation is changing to mandatory participation.
    • California issues these letters when they determine that your tax liabilities are high enough to require electronic payments.
  • EFT Credit instructions
    • This letter is a courtesy notification that you’ve been enrolled for ACH Credit payments.  You do not need to contact your financial institution.  Avalara has the banking information and all other details needed to make ACH Credit payments on your behalf.
  • Eligibility for Removal from the Electronic Funds Transfer Program for Sales and Use Tax
    • Your average monthly tax liability is below $10,000, so mandatory participation is changing to volunteer participation.
    • This letter is a courtesy notification that you're no longer required to remit your tax payments electronically. However, please do not withdraw from the EFT program.
  • Mandatory Electronic Funds Transfer Status for Sales and Use Tax
    • Your average monthly tax liability exceeds $10,000, so participation is mandatory.
    • California issues these letters when they determine that your tax liabilities are high enough to require electronic payments.
  • Reminder – Change in Payment Requirement for Sales and Use Tax  
    • Your average monthly tax liability exceeds $10,000, so participation is mandatory.
    • The state is reminding you that your payments must be remitted electronically.
  • Removal from the Electronic Funds Transfer Program for Sales and Use Tax
    • Your average monthly tax liability is below $10,000, so mandatory participation is changing to volunteer participation.
    • This letter was a courtesy notification that you're no longer required to remit your tax payments electronically. However, please do not withdraw from the EFT program.