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Avalara Help Center

Beverage Alcohol customers: ACTION NEEDED: Avalara is updating the funding liability bank account on October 1, 2021

What is happening

Effective October 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 product, licensing and tax obligations, see below for the action you need to take on October 1, 2021 (no later than October  4, 2021).

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 October 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 October 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 Beverage Alcohol 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 9311833001.

Q: Will this impact how I pay my service fees and Corporate invoices?
A: No. This change will impact the ‘trust’ bank accounts used to transmit funds for your product registrations, license renewals and tax obligations. No changes are being made to the bank account where you send your service fees.

 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 filing ids.

Q: Why did the email I received ask me to reply to bevalc_globalpayments@avalara.com by 9/13/2021?
A: The email requested you to email bevalc_globalpayments@avalara.com  to confirm you received the information regarding the needed update to be completed on October 1, 2021.  This email and requested response was just to confirm that you received and understood the action requested.

Q: What happens if I complete the change before Oct 1, 2021?
A: If you complete the change prior to October 1, 2021 and funds are pulled/wired after you made the change but before the update on Avalara side- your request may not be honored and will require a change and resubmit.  This may delay payment/processing of compliance tasks and/or returns due to lack of funds.

Q: What happens if I complete the change after Oct 1, 2021?
A: Your October funding pull may not complete if pull is initiated before you make the change.  Please ensure you make the change on Oct 1, 2021 and not later than Oct 4, 2021.

QCan I get a W9 or bank letter copy of this?
A: Yes, please email bevalc@avalara.com to receive a copy of a W9.

 

 

 

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