Who is Required to Make Tax Payments Via EFT?
Act No. 2006-552, specifies that for each occasion a business taxpayer is obligated to make a tax payment of $750 or more to the Alabama Department of Revenue (ADOR), such payment must be remitted electronically through an electronic funds transfer (EFT) method.
Voluntary Use of EFT to Make Tax Payments
Taxpayers who are not required to make EFT payments for a tax may elect to pay any or all taxes using EFT. Taxpayers making a voluntary election to make EFT payments for a tax are subject to the same rules of the Alabama EFT Tax Payment Program as taxpayers required to make EFT payments.
NOTE: Taxpayers required to electronically file tax returns must file their return and initiate payment using the Electronic Filing & Payment System.
Taxes Covered by the Alabama EFT Tax Payment Program
- Alabama Nursing Facility Privilege Tax
- Alabama Pharmaceutical Services Tax
- Business Privilege Tax
- Cellular Telecommunications Services Tax
- Coal Severance Tax (State and Local)
- Contractor’s Gross Receipts Tax
- Corporate Income Tax
- Financial Institutions Excise Tax
- Forest Products Severance Tax (State and Local)
- Freight Line Equipment Companies’ Tax
- Gasoline Tax (State and Local)
- Gasoline Tax (Aviation)
- Hazardous Waste Fee
- Hydro-Electric KWH Tax
- Income Tax Withholding Payments
- Individual Income Tax
- International Fuel Tax Agreement
- Local Solid Mineral
- Lodgings Tax (State and Local)
- Lubricating Oils Tax
- Motor Carrier Mileage Tax
- Motor Fuels (Diesel) Tax (State and Local)
- Oil and Gas Privilege Tax
- Oil and Gas Severance Taxes (Local)
- Pari-Mutuel Pool Tax
- Pass-Thru Entities Composite Return
- Playing Cards Tax
- Registration of Securities
- Rental or Leasing of Personal Property Tax (State and Local)
- Sales Tax (State and Local)
- Solid Waste Disposal Fee
- Telephone Tax/Telephone Gross Receipts Tax
- Tobacco Tax (State and Local)
- T.V.A. Electric Payments
- Under/Above Ground Storage
- Use Tax (State and Local)
- Utility Excise Tax
- Utility Gross Receipts Tax
- Utility License Tax (2.2%)
- Wholesale Oil License Payments
EFT Payment Methods Available
Debit Payment Method
The ACH Debit payment method is the primary method used by taxpayers, and is the preferred method by the ADOR, to make payments for a tax under the Alabama EFT Tax Payment Program. Through https://myalabamataxes.alabama.gov (MAT) or another ADOR payment portal (https://revenue.alabama.gov/eservices/), the process is safe, simple, and convenient, and the cost of processing ACH Debit payment transactions is borne by the ADOR. Each individual EFT payment is only initiated upon the express authorization of the taxpayer.
Credit Payment Method
The ADOR will allow taxpayers to use the ACH Credit payment method only if certain qualifying conditions are met. A taxpayer must request permission from the ADOR to use the ACH Credit method and submit a written request, accompanying the EFT:00l form, which demonstrates the existence of a valid business operational reason for using the ACH Credit payment method in lieu of the ACH Debit payment method. Taxpayer requests to use the ACH Credit method will be reviewed on a case-by-case basis. A taxpayer who is already using the ACH Credit method to pay taxes for other states is deemed to have a valid business reason for using the ACH Credit method to make payments for Alabama taxes.
The ADOR reserves the right to revoke the ACH Credit method payment privilege of any taxpayer for the following reasons:
- Failure to transmit consistently error-free payments
- Substantial variation from the requirements and specifications of the rules of the Alabama EFT Tax Payment Program;
- Failure to make timely EFT payments or to provide timely payment information; or,
- Failure to provide the addenda record, required by the Alabama EFT Tax Payment Program, with the EFT payment.
How Do I Register to Pay Via EFT?
Pre-registration is NOT required for making ACH Debit Method payments. Make ACH Debit payment through the Pay links or along with return filings provided in My Alabama Taxes (MAT).
You must be pre-approved by the ADOR to make ACH Credit method payments. To register with the ADOR, complete Form EFT:001 entitled EFT Authorization Agreement Form, and mail or fax it to the ADOR’s EFT Unit.
One of the most important items of information required by the EFT:00l form is the information concerning the EFT Contact Person. The EFT contact person is the individual whom the ADOR will contact if there is a question concerning an EFT payment made by the taxpayer.
Can I File My Tax Returns and EFT Payment Online?
Certain Business Taxes are required to be electronically filed through the Department’s electronic filing and payment system, My Alabama Taxes (MAT): myalabamataxes.alabama.gov. Electronic payment for these taxes is made at the time the return is submitted.
All other Business and Corporation Income Taxes administered by the ADOR can be paid electronically through My Alabama Taxes (MAT) or another electronic portal.
Is There a Toll-Free Number I Can Call for Guidance and Technical Assistance?
The ADOR has established an EFT Unit to provide guidance and technical assistance to taxpayers participating in the Alabama EFT Tax Payment Program. A toll-free EFT hotline is available to taxpayers from 8:00 a.m. through 5:00 p.m. (Central Standard Time) each business day. The EFT Hotline number is 353-7659 (local Montgomery area) or toll free 1-877-256-2447.