Every month, Avalara collects millions of dollars in liability and remits that money to states, provinces, and countries around the world. Funds are first collected from the client, and then paid to the jurisdiction at the time of filing.
Dates to remember
The first summaries build on the 1st of the month, while the last returns are filed on the 30th. This is considered the filing cycle, or the cycle. Avalara ensures that all of the liability funds successfully get from the client to the taxing authority.
The filing cycle is broken up into a few key dates or sections. You may want to take a minute to review the filing cycle overview, and then continue:
- 1st - 20th: Schedule returns for your clients.
If you're filing with us for the first time, submit a filing request by the 20th of the month, and make sure you have a funding power of attorney completed for each client.
- 1 - 10th: Reconcile the returns you want us to file.
- Avalara also runs a test debit against the bank accounts of new clients during this time.
- Remember that after you approve a return, its records are locked for that month.
- If you do not approve a return by 5 PM PT on the 10th, Avalara automatically approves it on your behalf.
- 11th - 12th: We withdraw money from the bank account listed on the funding power of attorney to pay for the tax liability.
Avalara's compliance team begins preparing the returns to be filed.
- 13th - 20th:
The majority of returns are filed and payments are made to the state. If the client owes more than what is initially debited, Avalara makes an additional pull.
- 21st - 30th:
The remaining returns and payments are filed along with additional pulls and refunds.
Funding and payment
Funding is the process of transferring money from the client's account to Avalara in the amount of the client's liability summary total amount due. Avalara debits the client’s bank account based on the banking information provided in the funding power of attorney and may take up to 24 hours to settle. These funds are collected simultaneously regardless of when the return is due, and held in Avalara's bank account until the time of filing.
Funding is due on the 12th and generally the funds are in Avalara's bank account by the 13th. From that point, payment to the state takes place on the 20th, and final payment is due by the 30th.
The funds that are collected during the funding process are then delivered to the taxing authorities via one of the following payment methods:
- ACH Debit
Submitting payment with the return, typically through the state website. ACH Debit payments are made individually, often one return at a time, by the filer.
- ACH Credit
A scheduled payment made to the state independent of the return. Payment is initiated the day before the return is due, and settled the following day, to ensure timely payment.
A paper check to be mailed with the paper return.