Funding your returns through wire transfer is required in any of the following cases:
- If you don't have access to a US-domiciled bank account.
- If you prefer to fund your returns through wire transfer instead of automatic ACH debit withdrawals.
In either of the preceding cases, you must complete the wire funding power of attorney instead of the ACH debit funding power of attorney.
The wire funding power of attorney cannot be accessed from AvaTax console. Avalara needs to send this document to the global client payments team for their approval. Once Avalara initiates the wire funding power of attorney, this document arrives on the EchoSign inbox. If you are not authorized to electronically sign this document, forward the EchoSign email to the concerned person within your company.
To ensure that funding can be correctly identified, include the following information in the wire text/addenda field - if you are funding for multiple entities, include all the names:
- Company name
- Company ID
- Tax period
- Dates to review returns
Returns are available for review in AvaTax between the 5th and the 10th of each filing month.
- Tax funding due date
Tax funding is due on the 14th of each filing month. If 14th falls on a weekend or a holiday, then tax funding occurs on the nearest business day before the weekend or holiday.
If funds are not received by the funding deadline, then Avalara won't be responsible for any penalty/interest incurred by jurisdictions.
However, Avalara will make best efforts to process tax liability payments if funds are received after the 14th of the month.
Check the amount to be funded
To know the amount to fund:
Click Returns > Approve returns after the returns have locked on the 10th.
Locate the Amount Due field to view the amount to fund.
Check the summary of amount due to Avalara
To view the summary of the amount due to Avalara, refer to the tax liability worksheet summary return detail report. To view this report:
In AvaTax, click Reports menu.
Select the Liability & tax return reports tab.
From the REPORT CATEGORY drop-down, select Liability worksheet reports.
From the REPORT NAME drop-down, select tax liability worksheet summary return detail.
Under the Details section, specify the details, such as month, year, company, country, region, and worksheet type.
Select Generate and download report.
Cases while funding returns
- Handling cases when Avalara receives only a portion of tax liability
If Avalara receives a portion of your total tax liability due to Avalara, then timely payments to jurisdiction(s) may get challenging.
Therefore, we recommend you to fund the full liability amount. If you see any difference from the amount to be paid, contact Support/Treasury by logging a support case before the 14th of the month.
- Handling cases when tax funding is late or not received during the filing period
When tax funding is late or not received during the filing period, then as per Avalara's Terms & Conditions, Avalara reserves the right to charge a late wire funding penalty.
In addition, Avalara can assess the fees associated to banking fees if payments already in route to jurisdictions are blocked because you could not timely fund your full tax liabilities.
- Handling wire fee charged by bank
While funding the amount due to Avalara, ensure to cover any wire fees that your bank might charge you.
- Handling changes in tax liabilities
During a filing period, tax liabilities may change and cause a variance. If your liability balance increases, you will receive a request for the additional funding needed.
- Handling payment of invoices through electronic transfer
The tax funding trust bank account is separate from Avalara's corporate account. It is not possible to club tax funding payments, such as invoice payments and service fees. Therefore, if funding is transferred to an incorrect bank account of Avalara, delays may happen in identifying and allocating your funding correctly.
- Handling over funding
Avalara does not issue refunds if the returns are funded through wire transfer. In such cases, Avalara's policy is to carry-over any over funding to the following month’s tax funding due once we get confirmation from you. If a refund is due back to you for any reason, we must retrieve your banking information to process an ACH.