WAC 228-02

Electronic funds transfer - Generally.

Late payment - Disregard of written instructions - Evasion - Penalties

Electronic funds transfer. Effective 12/10/06

Electronic funds transfer. Effective 4/13/01.

Electronic filing and payment. Department revised this rule to reflect changes in the law resulting from Substitute Senate Bill 5571 as passed by the Legislature during the 2009 regular session (Chapter 176, Laws of 2009), Substitute House Bill 2620 (Chapter 111, Laws of 2010), Engrossed House Bill 1357 (Chapter 24, Laws of 2011), and House Bill 2758 (Chapter 39, Laws of 2012.) The legislation requires taxpayers with a monthly and quarterly tax reporting frequency to file and pay their excise taxes to the Department electronically.

ELECTRONIC FUNDS TRANSFER -- DUE DATES. An electronic funds transfer (EFT) is to be completed so that the state receives collectible funds on or before the next banking day following the tax return due date. Generally, tax returndue dates, for monthly.

ELECTRONIC FUNDS TRANSFER -- EFT -- DUE DATE -- PENALTY. In order to avoid late payment penalties, a return must be completed by the next banking day after the return's due date. If both events occur, there is timely filing and payment and no penalties apply.

ELECTRONIC FUNDS TRANSFER -- EFT -- LATE PAYMENT PENALTY. There are no special provisions for penalties when payment is made by EFT.The general provisions for all taxpayers apply.Penalties may be waived only when the circumstances causing delinquency are beyond the control of the taxpayer

EFT PAYMENT – LATE PAYMENT PENALTY. For taxpayers required to pay their taxes by EFT, a timely filed return and timely payment by EFT are required in order to avoid late payment penalties.An EFT is timely when the state receives collectible funds on or before 3:00 p.m. of the EFT payment due date.Where a taxpayer calls in its EFT payment seven minutes late, the payment is not timely.As an administrative agency, the Department is given no discretionary authority to waive or cancel penalties.

ELECTRONIC FUNDS TRANSFER (EFT) – DUE DATE—PENALTY. In order to avoid late payment penalties, a return must be received by the Department on or before the due date, or with a postmark on or before the due date, and the EFT payment must be completed, in its entirety, by the next banking day after the return’s due date.If both events occur, there is timely filing and payment and no penalties apply.

ELECTRONIC FUNDS TRANSFER (EFT) – LATE PAYMENT PENALTY. There are no special provisions for penalties when payment is made by EFT. The general provisions for all taxpayers apply.Penalties may be waived only when the circumstances causing delinquency are beyond the control of the taxpayer.

ELECTRONIC FUNDS TRANSFER (EFT) —DUE DATES. An electronic funds transfer (EFT), when the taxpayer uses the automated clearing house (ACH) credit method, is to be completed by the taxpayer so that the state receives collectible funds on or before the next banking day following the tax return due date. Generally, tax return due dates for monthly filers are the 25th of every month.If the 25th falls on a Saturday, Sunday or holiday, the tax return due date is the next banking day. On such occassions, the EFT payment due date is on or before the banking day following the tax return due date.

EFT PAYMENT – NOTIFICATION THAT REQUIRED TO PAY BY EFT. Inability of the Department to prove it notified a taxpayer that the taxpayer was required to pay by electronic funds transfer (EFT) at least three months prior to the start of the EFT payment requirement, does not excuse the taxpayer from the EFT payment deadline if the taxpayer received actual notice of the EFT requirement reasonably prior to the EFT payment due date.

EFT PAYMENT -- NOTIFICATION TO TAXPAYER. Generally, Department notification of a taxpayer need only be addressed to the address of the taxpayer as shown by the records of the Department.Notification that a taxpayer is required to pay by electronic funds transfer (EFT) is not an exception to that general principle.

LATE-PAYMENT PENALTIES – INTEREST – WAIVER OF – EFT FILER – PAYMENT BY MAIL – TIMELINESS OF. Where a taxpayer is required to file its tax returns by electronic funds transfer (EFT), its payment must be credited to the Department’s bank account on the next banking day following the due date of the return. Where such a filer mails its payment instead of paying by EFT, the fact that the envelope bears a postmark date on or before the due date does not make the payment timely.

RCW 82.32.080(2) – ELECTRONIC FILING REQUIREMENT – WAIVER – “GOOD CAUSE.” Taxpayer’s concern that his accounts and funds would be at risk if he paid electronically is not “good cause” for the purpose of waiving the electronic filing requirement.